But the most surprising thing in the whole controversy is that for the same project, Allain Duhangan applied for carbon credits from the United Nations Framework Convention on Climate Change through the National Clean Development Authority.

In its presentation at a Shimla workshop on climate change, the company claimed it would earn approximately 50 lakh CERs (Certified Emission Reductions) over a 10-year period between 2007 and 2017. At the current rate, this means Allain Duhangan can earn nearly 5 crore euros (Rs 250 crore) by selling these carbon credits in the international market to developed countries.

CEO of Allain Duhangan Awadh Bihari Giri denies having misled the NCDA in getting itself registered for carbon credits. “We have been given carbon credits purely on the basis of our own standing. The project has some distinctive features and is being executed as par international standards. It will be commissioned in record time, despite challenges, and will reduce greenhouse gas emissions after it goes into power generation mode.” He also talks about sustainable development and the enormous benefits to locals.

However, Additional Chief Secretary Negi admits that all this looks like a distinct possibility now. “We really wonder how much damage the company has caused to the environment and ecology. If they don’t restore the damages and agree to strictly follow the environment norms, the project will be in trouble,” adds Negi.

While hydel-power projects are considered a clean mode of electricity generation, various studies have proved that they do carry their own environmental and social impacts.

... contd.