India to set up coal power plant in Trincomalee

by Anura Maitipe

Work on the Rs. 5 billion coal power project in Trincomalee will commence in January 2008, Minister of Power and Energy W.D.J. Seneviratne told the Sunday Observer.

The project will be implemented jointly by the National Thermal Power Generation Company (NTPC) of India and the Ceylon Electricity Board (CEB) on a build, operate and transfer (BOT) basis.

"With the implementation of the project the country's power generation capacity will increase by another 300 MW. The project will commence operations by 2011. The plant will require around 2.5 million tons of coal annually. Coal will be imported from Australia and Indonesia," he said. "The government has also decided to proceed with the proposed Coal Power Plant at Hambantota with the help of the Indian government," the Minister said.

The country's annual power requirement is around 7,600 MW. Of this nearly 4,100 MW is generated from hydro power stations and the rest from diesel power stations.

The CEB spends over Rs. 80 million per day on fuel to generate power. The same amount of electricity can be produced with Rs. 32 million at Rs. 4.00 per unit, through a coal power plant.

Meanwhile, an Indian diplomatic source said the project is vital for both countries. It will be the first project that will be set up outside India.