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| India's power project in final stage: Sri Lanka |
| Press Trust Of India / Colombo Sep 25, 2009, 00:50 IST |
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Sri Lanka and India are giving final touches to the proposed $500-million thermal power plant at Sampur in Trincomalee, the island nation’s power minister W D J Seneviratne has said.
“We are giving finishing touches to the negotiations with India to construct jointly a coal power plant at Sampur in Trincomalee. This would be the country’s largest coal power plant with a capacity of 1,000 Mw,” the minister said.
An agreement on power purchasing of the new plant would be signed between India’s state-run power producer NTPC and the Ceylon Electricity Board after conclusion of the negotiations.
“The plant will be a joint venture between the Indian and Sri Lankan governments and the plant will be jointly owned by (the) two countries in equal shares,” the minister told the state-owned Daily News.
The minister said Sri Lanka would benefit from the project and that the power produced would be brought to Anuradhapura in North Central Sri Lanka and would be distributed to other areas.
Once the negotiations are complete, NTPC is expected to sign the commercial agreement with the Sri Lankan power authorities for construction of the power plant in eastern part of the island nation.
NTPC officials were holding discussions to this effect in the recent weeks. The project will consist of two phases and the first phase is expected to be completed by 2012.
The initial planning of the project has been completed and the commencement of the construction work is expected in November, according to officials.
The construction work of the plant would be undertaken by NTPC, while the Ceylon Electricity Board would monitor the engineering work of the project, it said.
According to officials, initially, both sides will invest $75 million each and later $350 million will be infused by both parties.
NTPC signed an agreement with the government of Sri Lanka and Ceylon Electricity Board in December 2006 for the development of a 2x250-Mw coal-based power project at Trincomalee in Sri Lanka.
According to the memorandum of understanding, the project would be developed through a joint venture company of NTPC and Ceylon Electricity Board.
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