BS reported that NTPC and Power Grid Corporation of India have planned to come out with feasibility reports on two projects in the power sector in Sri Lanka by January.

The final agreement on both projects is expected to be signed soon after the detailed reports are out.

NTPC is looking to set up a 2x250 MW coal based project at Sampur in the Trincomalee region. PGCIL intends to come up with India’s first undersea power transmission project, connecting Sri Lanka.

Both projects are considered diplomatically important, as the China National Machinery and Equipment Import and Export Corporation is also setting up a coal based power project in the Norochcholai area, with an investment of close to USD 900 million.

In September 2011, NTPC and the Ceylon Electricity Board of Sri Lanka had incorporated a joint venture company, called Trincomalee Power Company, to set up the plant which would see investment of INR 3,000 crore.

PGCIL and CEB had signed a memorandum of understanding for the feasibility study for the undersea transmission line in 2010.

(Sourced from BS)