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Plans for power plant in Lanka in trouble
21 February 2011: The plans to set up a coal power plant in Eastern Sri Lanka by an Indian company is facing a road block following legal queries raised by the Sri Lanka Attorney General's office.
The Sri Lanka Attorney General's office has raised 70 queries on basic issues "at the nick of time" resulting in the latest delay. NTPC and Ceylon Electricity Board (CEB) had been discussing since 2006 to set up a 500 MW coal based power plant at Sampur in Trincomalee as an equal JV. The NTPC board has approved the agreement in July 2010. The CEB also has cleared the project at about the same time but had to wait for the clearance from Attorney General's office. Meanwhile, the CEB has invited a team of NTPC executives for discussing the issues but is yet to offer a schedule. Once completed, the power plant is expected to generate total of 1,000 MW to the national grid in two phases. In the Phase I of the project 500 MWs will be added while another 500 MWs will be added from the Phase II.
Source: Colombo Page