Sri Lanka has dropped the plan of building a power plant in Trincomalee which was proposed by National Thermal Power Corporation (NTPC), reports the Hindu.
This decision was taken after environmentalists expressed stern concerns over the plan. According to The Hindu
, the Indian High Commission officials were not informed about this matter yet from the Government of Sri Lanka.
NTPC holds half of the stake with Ceylon Electricity Board (CEB) and will face a massive “blow” due to this decision.
Sri Lanka has decided to opt for alternatives such as “Liquefied Natural Gas (LNG), solar and wind power,” The Hindu quotes Sulakshana Jayawardena, director-development in the Sri Lankan power ministry.
The Government of Sri Lanka, CEB and the NTPC signed an agreement in 2006 and a joint venture, the Sampur Coal Power Plant, was proposed. The partners then created the Trincomalee Power Company Limited, “with the aim of setting up two coal-based power plants with a total capacity of 500MW in the strategically crucial coastal town on the island’s east coast,” says The Hindu.
The Sri Lakan Ministry is now thinking of ways of exploring a partnership with NTPC by “using other sources of energy.”
According to a report
on Reuters, Sri Lanka’s Petroleum Minister Chandima Weerakkody said: “We do not want to hurt India. So President Sirisena in his visit [to India in May] has offered an LNG plant instead of the coal plant.”