Indian Media reported today that the proposed Sampur Coal Power plant in Trincomalee was given approval by the Attorney General’s Office.
Indian Media also reported that the preliminary approval was given for the plant 6 years ago.
The Attorney General’s Office has given approval 2 years after the India Thermal Power Corporation and the Ceylon Electricity Board formed a join venture to start its construction.
The documents have now been submitted for the approval of the Power and Energy Ministry.
CEB Chairman W.B. Ganegala told our news team that the agreement will be signed after having another discussion with the Indian company.
The project is estimated to cost about 500 million dollars with NTPC and Ceylon Electricity Board having 50% stake each.
The plant would use imported coal and consists of a transmission line, to be built from Trincomalee to Madurai, including 39 km of submarine cable.
Officials of Ceylon Electricity Board in fact have alleged that each unit of power produced at the joint venture project would cost 18 rupees, much higher than the cost of 13 rupees from for a similar project at Norochcholai.
There were also disagreements over the high heat rate — signifying higher consumption of fuel to produce a unit of power — and the maintenance cost.