Plugging In

India’s National Thermal Power Corporation has put in a bid to develop a 300 MW coal power plant in Sri Lanka, Indian news wires reported today. India’s National Thermal Power Corporation has put in a bid to develop a 300 MW coal power plant in Sri Lanka, Indian news wires reported today.

The proposal sent to the government last week, is based on a joint venture with Indian Bharat Heavy Electricals and the Ceylon Electricity Board.

Based on the proposal, US$ 150 mn project will be developed on a debt to equity ratio of 70 to 30, with ten percent of the equity put in by the CEB and the balance by NTPC and Bharat Electricals.

The new United Peoples Freedom Alliance government has been courting Indian interest in the sector, with a team from NTPC visiting Sri Lanka earlier this year.

Meanwhile, Sri Lanka’s record of failure in retaining support for the project is historic and delays have been built into the project – the country’s first coal plant was to be commissioned this year.

In 1999 the Japanese Government pledged US$ 500 mn for phase one (300 MW) of the Norachcholai coal project, but this was allowed to lapse.

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