GIZ-CDM India was established in August 2003, through an agreement between Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Bureau of Energy Efficiency (Ministry of Power), Government of India, under the Indo-German Energy Programme (IGEN) as the capacity building facility that can help reduce transaction costs in the early market development process. It's objective is to foster high quality CDM projects that will successfully complete the project cycle and provide experience through 'learning by doing'. These projects should be widely replicable. Capacity building and providing support to public and private sector institutions for preparation and implementation of internationally acceptable projects under the Clean Development Mechanism is its primary aim. It actively cooperates with the National CDM Authority (NCDMA) of India for institutionalizing CDM projects in India.The institutional setting concerning CDM approval, Indian National CDM Authority was established with Ministry of Environment & Forests (MoEF), Government of India in December 2003. NCDMA is chaired by Secretary MoEF and managed by Member Secretary, MoEF. It is clearing projects on monthly basis and is in charge of formulating the appropriate guidelines.  Till now 60 project proposals with the potential to generate over 40 million CERs have been received by GIZ. It supported PDD development of 10 projects; of which 6 projects have received host country approval and 3 have signed validators contracts India has major CDM Potential and Challenges  the institutional setting concerning CDM approval.