Indo-Lanka joint venture company to expedite the Sampur coal power project
Amidst Indian pressure to expedite work on the Sampur coal power project, the government has given the full responsibility to the Indo Lanka joint venture company, Trincomalee Coal Power Co. Ltd (TCP Ltd) to carry out all activities connected to the 500-W plant, a top government official said.
Secretary to the Ministry of Power and Energy M.M.C. Ferdinando told the Business Times that the Ministry has nothing to do with the implementation of the project as it is the responsibility of the joint venture company.
He said that New Delhi repeatedly voiced concern on the lack of progress in the project and the President has directed the authorities to expedite it after his meeting last month with Indian Prime Minister Narendra Modi.
Mr. Ferdinando said that the TCP Ltd has been directed to kick-start the project without delay as Sri Lanka needs low cost power generating facilities that will eventually be beneficial to the people.
The Government has fulfilled all its obligations including the facilitation of the joint venture agreement, provision of the 500 acre land and Ceylon Electricity Board (CEB) equity share of US$75 million as well as infrastructure facilities in Trincomalee including port and anchorage facilities and tax concessions under Board of Investment laws, he disclosed.
India’s National Thermal Power Corporation (NTPC) has 50 per cent equity and the balance 50 per cent is with the CEB.
He said that New Delhi repeatedly voiced concern on the lack of progress in theproject and the President has directed the authorities to expedite it after his meeting with Indian Prime Minister Narendra Modi.
According to the agreement between NTPC and the CEB, a 500 MW (250×2) capacity coal power plant was to be set up in Sampur.
The Government has entered into this agreement in order to promote India’s goodwill towards Sri Lanka and that was the reason behind the awarding of this contract to NTPC of India, a CEB trade union official said.
He said the Sampur agreement is not beneficial to Sri Lanka, and it raises suspicion regarding the integrity of the top officials involved in the implementation process of the project. He said it is essential to involve the Public Utilities Commission of Sri Lanka to look after the interests of consumers as the CEB is going to purchase power from TCP Ltd which is an independent power producer.