NTPC, CEB to set up 500 MW power plant in Sri Lanka
Making entry into the overseas market, India's largest power generation utility NTPC on Tuesday inked a joint venture pact with Ceylon Electricity Board to set up a 500 MW coal-based power plant in Sri Lanka.
September 06, 2011 / 18:54 IST
Making entry into the overseas market, India's largest power generation utility NTPC on Tuesday inked a joint venture pact with Ceylon Electricity Board to set up a 500 MW coal-based power plant in Sri Lanka.
The plant, which is estimated to see an investment of up to USD 700 million, would come up at Sampur in Trincomalee.It will have a capacity of 500 MW with two generating units of 250 MW each. There is also a possibility of enhancing the capacity by another 500 MW.NTPC said in a statement that the project would go on stream by 2016 and would help in meeting the rising demand for power in Sri Lanka.Although the Sri Lankan Power and Energy Secretary M M C Ferdinando estimated the total cost of the project to be USD 500 million, NTPC said it anticipates the costs to be in the region of USD 700 million.While 70% of the cost is to be generated through external sources, Ceylon Electricity Board (CEB) and the NTPC would bear the balance costs."The government of India has offered a concessionary line of credit of USD 200 million to the government of Sri Lanka to fulfill its commitments under the implementation agreement," an Indian High Commission spokesman said in Colombo.Indian funds would also be used for building a jetty at Sampur. For the project, a 50:50 joint venture company would be incorporated in Sri Lanka by NTPC and CEB. Land for the project would be provided by the Sri Lankan government to the JV on long term lease."The coal for the project shall be imported and supplied by Lanka Coal Company (LCC). The power generated shall be supplied to CEB through CEB grid system," the statement said.Sampur, in Trincomalee district, was once under the LTTE and was brought under the government's control by Sri Lankan security forces in late 2006.The joint venture agreement was signed by NTPC CMD Arup Roy Choudhury and CEB Chairman Wimaladharma Abeywickreme in Colombo.NTPC has a total installed capacity of 34,854 MW, with 15 coal-based, 7 gas-based power stations and 6 joint venture/subsidiary power projects across India.NTPC is currently working on many new projects for rapid capacity addition and plans to become 1,28,000 MW plus company by 2032.CEB operates 24 power plants with an aggregate installed generation capacity of 2,058 MW Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
