"NTPC, in a recent communication had stated that it was not possible to accept the new site located in the Sampur area, since it was recently evacuated from the LTTE," India's Financial Express newspaper said.
"Besides, NTPC is fearful that the construction of the project at the stated site can stir political sensitivities in India."
The newspaper said NTPC through the power ministry has sought the help of the external affairs ministry to change the location.
NTPC, a state-owned firm, has signed up with Sri Lanka's Ceylon Electricity Board –also state owned- to build a 500 MegaWatt power station in the northeastern Trincomalee district where the Indian Oil Corporation already has a presence.
The power plant was to have been built in Trincomalee, but the newspaper says "the new site pr