Rana Sugars eligible for Carbon Credits

Rana Sugars Ltd has announced that the Company is eligible for carbon credits as per registration with United Nations Framework Convention on Climate Change (UNFCCC) with retrospective effect from the year 2003. This would raise the net profit for the 2006-07 by Rs 10 crores on the 1,30,000 units of CER earned a US$ 17 per unit.

After Kyoto Protocol Treaty the concept of Carbon Credit trading seeks to encourage countries to reduce their Green House Gases (GHG) emissions as it rewards those countries which meet their targets.

Further, the two new opening sugar units of the Company having capacity of 5000 TCD with co-generation power capacity of 20 MW each will also be eligible for Carbon Credit approximately 30000 to 35000 units of Carbon Credit (CERs) per annum in long run. The trading in Carbon Credits (CERs) would generate an additional net profit of Rs 5.00 crores per annum.

Source : Equity Bulls

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