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Sri Lanka close to signing power purchase deal with India JV

Aug 01, 2013 (LBO) – Sri Lanka’s state-run Ceylon Electricity Board is close to signing a power purchase deal with an Indian joint venture coal plant, a top official said. The CEB and India’s National Thermal Power Corporation is to build a 500 MegaWatt coal plant in Trincomalee but signing its power purchase agreement was delayed over a dispute with high heat-rates and operational maintenance fees.

Sri Lanka’s power ministry secretary M M C Ferdinando said this week that the revised agreement had received cabinet approval.

But under Sri Lanka’s power law it also had to be submitted to the power regulator, the Public Utilities Commission.

The coal plant has to be up by at least 2017 to prevent a power shortfall.

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