Sampur coal power project to go ahead

The technical issue about the heat wave and the cost of maintenance and operations has been dragging on for two years, we came to an agreement and then the issue cropped up again and discussions are being conducted to reach an agreement

The Ministry of Power and Energy yesterday denied reports that the National Thermal Power Corporation (NTPC) of India had pulled out of the Sampur Coal Power Plant Project in Trincomalee.

The Ministry said the differences of opinion on technical issues and the cost of operations and maintenance were being ironed out at the moment.

Ministry Secretary M.M.C. Ferdinando said discussions between NTPC and Sri Lanka were ongoing and they hoped that the outcome would be positive.

“The electricity while enhance the quantity of technical issue about the heat wave and the cost of maintenance and operations has been dragging on for two years, we came to an agreement and then the issue cropped up again and discussions are being conducted to reach an agreement,” Mr. Ferdinando said. The power plant when fully operational will add 500 MW to the national grid and the CEB says this additional input will help reduce the cost of a unit of power available for distribution.

Economic Development Minister Basil Rajapaksa, newly appointed Power and Energy Minister Pavithra Wanniarchchi and Treasury Secretary P.B. Jayasundara are participating in the discussions. Earlier this year, the NTPC informed the Indian government that it could not agree to the terms set out by the CEB. The Indian company and the CEB signed an agreement in 2011 for the construction of the power plant in Sampur at a cost of Indian Rs.40,000 million.

According to media reports, NTPC Chairman Arup Roy Chaudry had sent a letter to the CEB in January informing it that conditions and rules set out by the CEB at the beginning had changed completely.