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India, Sri Lanka to sign pacts for 500-MW power project

NEW DELHI: India and Sri Lanka will tomorrow sign agreements for a 500 MW thermal power project to be jointly developed by state-owned NTPCBSE -1.23 % with a local partner in the island nation. 

The proposed signing of pacts for the Sri Lanka plant comes close on the heels of India and Bangladesh inaugurating two power projects on Saturday and reflect stronger regional co-operation in this sector. 

The Sri Lanka project, to be fired with imported coal, would be developed by Trincomalee Power Company -- an equal joint venture between NTPC and Ceylon Electricity Board (CEB). 

According to an official, agreements with regard to the proposed 500 MW power project in Sri Lanka would be signed on Monday. These pacts include those related to power purchase, land lease and coal supply. 

External Affairs Minister 
Salman Khurshid, his Sri Lankan counterpart G L Peiris and government officials from both sides, among others, are expected to be present during the signing of pacts. 

Electricity generated from the plant, which would have two units of 250 MW, would be supplied to CEB. 

Coal for the project would be imported and supplied by Lanka Coal Company (LCC), while land would be given by the Sri Lankan government on a long term lease. 

Even though the agreement for the joint venture project was signed in late 2011, various differences between NTPC and CEB had been delaying further progress. 

India's largest power producer NTPC has an installed generation capacity of 41,184 MW.