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No change in Sampur coal power project: Ministry

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  No change in Sampur coal power project: Ministry    

            Monday, 11 March 2013 01:16        

   

    sricoal60.jpgThe

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 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 electricity while enhance the quantity 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. (Nabeela Hussain)

 

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