August 28, 2008

Sri Lanka allots site for NTPC project

BS reported that Sri Lankan government has allotted a site in Veloor to National Thermal Power Corporation for setting up a 500 MW imported coal based power project in Sri Lanka.

NTPC was not able to finalize the project site earlier, located near Trincomalee and Sampoor, due to opposition from locals and pro LTTE forces.

The proposed project will be implemented by a JV between NTPC and the Ceylon Electricity Board with an investment of INR 2,500 crore. The annual requirement of coal for the project will be around 2.5 million tonnes per annum, which will cost around INR 600 crore per annum approximately as per current prices.

The project is expected to be commissioned in 2012 and the power generated from the plant will be sold to Sri Lanka.