Despite differences of opinion of the top level authorities of Sri Lanka’s Power and Energy sector and issues concerning the resettlement of the displaced, the 500 MW Sampur coal power project is to proceed under Indian pressure

Official sources said that Indian High Commissioner to Sri Lanka, Mr Ashok K Kantha has persistently pushed for the project ever since he was posted here adding that India is exerting pressure on Sri Lanka to build a 283 km high voltage DC transmission line from Trincomalee to Madurai in Tamil Nadu, comprising 264 km of overland line and 39 km of submarine cable and to connect the grids of two countries.

The coal power plant is a joint venture project between the Ceylon Electricity Board and the National Thermal Power Corporation Ltd of India. A Joint Venture Company will be incorporated in Sri Lanka, with equal equity (50:50) contributions by NTPC and CEB, for implementing the power project.

The JVC upon incorporation will sign other agreements including a Power Purchase Agreement with the CEB, Board of Investment and an Implementation Agreement with the Government of Sri Lanka. These agreements have already been finalized, Power and Energy Minister, Patali Champika Ranawaka told the Business Times.

A feasibility study report on the project will be handed over to the Power and Energy Ministry soon.

The minister said that Sri Lankan power and energy experts and the ministry will study the report before giving the green light for Ceylon Electricity Board and National Thermal Power Corporation of India to go ahead with the project.

Minister Champika Ranawaka noted that international tenders will be called to purchase required parts of power generator including turbines, control systems, and boilers for coal fired power plant. All procurement and construction work will be carried out by duly selected contractors in a transparent tender procedure, he said adding that the Ministry will not award contracts to any party without calling for tenders.

(Sourced from www.sundaytimes.lk)