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India’s NTPC may drop Sri Lanka coal power project: report

Feb 22, 2013 (LBO) – India’s state-run National Thermal Power Corporation (NTPC) may pullout of a 500 MegaWatt coal power plant joint venture with Sri Lanka’s state-run Ceylon Electricity Board, a media report said.
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India’s Financial Express newspaper in an online report said NTPC had sought permission from Indian authorities to withdraw two of its senior officials who were stationed in Colombo for the project.

The report, citing a letter written by NTPC chairman Arup Roy Choudhury said Sri Lanka had sought to change a power purchase agreement which had been earlier agreed upon and the Indian firm was not willing to agree.

Sri Lanka wanted to return on equity to be reduced to 12 percent from an earlier 18 percent, the report said.
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Sri Lanka’s CEB was expected to won 50 percent of the coal plant which was to have been built in Trincomalee, in Eastern Sri Lanka.

The plant has been in negotiations since 2006 but the project had been delayed.

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