This project is the first Bio-Carbon Fund supported investment in India. The project, which is a stand-alone operation, seeks to maximize returns to agro-forestry investments for the benefit of small farmers by simultaneously facilitating linkages with: (i) end-users of wood products; and (ii) purchasers of eligible carbond credits. For this purpose, agro-forestry plantations will be established that consist of tree species with high rates of carbon sequestration. To facilitate sale of wood products on a sustainable basis, the project sponsor (VEDA-MACS Ltd.) has facilitated the set-up of an outgrower's scheme between the newly established Farmers' Assocation for Carbon Trading and JP-Paper Mills in Jaykaypur. Sale of carbon credits is facilitated by VEDA-MACS Ltd through an Emission Reduction Purchase Agreement under which the Bio-Carbon Fund intends to purchase up to 25% of generated Emission Reduction Value under the project. The project is located in six adjacent districts in AP and Orissa. Participation of the Government of India is limited to endorsement of the project by the CDM National Designated Authority under the Kyoto Protocol, which is located in the Ministry of Environment and Forests.Preparation and supervision costs of the project will be financed from BBCBF funds.