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Sri Lanka, India sign coal power project

(Xinhua)

08:35, September 07, 2011

COLOMBO, Sept. 6 (Xinhua) -- Sri Lanka and India here on Tuesday signed the much delayed 500 million to 700 million U.S dollar coal power plant in eastern Sri Lanka.

The plant, with the cost equally shared by Ceylon Electricity Board (CEB), Sri Lanka's state power entity, and India's National Thermal Power Corporation (NTPC) at Sampur in the eastern port district of Trincomalee, is to add 500 mega watts of power to the national grid by 2016.

Indian government has offered a concessionary line of credit of 200 million dollars to Sri Lanka enabling Sri Lanka to fulfill its commitments under the agreement including the construction of a jetty at Sampur and transmission lines, Indian High Commissioner in Sri Lanka, Ashok Kantha said.

Under the agreement, Sri Lanka is to provide 500 acres of land and other facilities including water for the Sampur project, Energy Ministry said.

The coal for the project will be imported and supplied by Lanka Coal Company (LCC) and power generated from the project is to be supplied through CEB grid system.

Meanwhile Sri Lankan Minister of Power and Energy told Xinhua that Sampur coal power plant will be last thermal power plant in Sri Lanka till 2025.

Sampur was the Tamil Tiger rebels' seat of administration when they ran a parallel government in the northern and eastern provinces. The military seized Sampur from rebel control in September 2006.

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