The name is absent



Scenarios

SPM
abated
(tons per
day)

Cost of SPM
abated
(lakhs
$ per
year)

Cost
saving
with
trading*

Ground level
concentration at
worst receptor
gg/Nm3

Improvement in
air quality

Base-case scenario

1849.9

2856.21

-

183.6

-

Present scenario

1797.15

2703.77

-

-

-

Trading Scenario

1849.9

2721.33

4.72%   '

170.0

7.4%

* With respect to base-case scenario.

$ 1 lakh is equivalent to 100 thousand.

Compliance with the existing point source emission norms at the sources
considered in the study involves the abatement of 1849.9 tons of SPM per day at a total
abatement cost of Rs. 2856.21 lakh per year (see table 2). The distribution of total
SPM abated in base-case scenario is given in annexure 3.

Before we discuss the cost implications of the trading scenario it must be
recalled that this study considers only the operating costs of abatement. Capital cost of
abatement is taken as sunk cost (section 3). This implies that abatement equipments are
exogenously given. Abatement efficiency of these equipments is, therefore, a function
of their design efficiency and vintage. This acts as an additional constraint on the
optimal trading.

For the base-case ambient air quality levels, the cost-effective allocation of
abatement responsibility among various emission sources obtained from the model is
presented in table 3. The most important observation that can be made on the basis of
these results is that the
Sinter plant having the highest abatement cost source is allowed
to emit more (at both the stacks), at 300 mg/Nm3 against the legislated level of 150
mg/Nm3. The other five sources considered in this study would compensate for it by
abating more than their legislated requirements.

Table 3. Trading Scenario

xiii



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