The Hindu Business Line : NTPC’s Lanka power plant to get new site

New Delhi, Sept. 13 National Thermal Power Corporation Ltd’s maiden foray outside the country — a proposed 500-MW thermal station in Sri Lanka — has faced a stumbling block, with the original site proposed in the Trincomalee region of the island nation being dropped in view of security concerns.

An alternative site is now being proposed by the Sri Lankan administration, in view of the concerns raised by NTPC with regard to the original site.

The original site location suggested by the Sri Lankan Government for the NTPC-Ceylon Electricity Board joint venture station at Sampoor in northern Sri Lanka has been ruled out as being “politically sensitive”. The Ministry of External Affairs and NTPC subsequently asked Sri Lanka for an alternative site.

Another location

According to Government officials, the Sri Lankan administration has now proposed another location north of Kappalthurai and initial clearances from the Sri Lankan security agencies have been obtained for this site. The details of security arrangements are being finalised by the Sri Lankan Government and the Ministry of External Affairs, officials said.

NTPC had entered into a Memorandum of Agreement with the Sri Lankan Government and Ceylon Electricity Board on December 29 last year to set up a 2x250 MW coal-based project in the Trincomalee region.

The project is to be executed through a 50:50 joint venture between NTPC and the Ceylon Electricity Board.

The Sampoor site, which was earlier inhabited by Tamils, was vacated by the Sri Lankan defence forces about a year ago.

“In view of the political sensitiveness of the original site, we had been seeking a change of location for the station. The new site is currently being examined,” an official said.

The proposed project is to be run entirely on imported coal and NTPC is looking at the option of coal imports from Indonesia and Australia.

Around 2.5 million tonnes would be required annually to fire the station, according to NTPC estimates.

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