NTPC signs pact with Lanka for power project

Colombo: The National Thermal Power Corporation (NTPC) and Ceylon Electricity Board are planning to sign a 50:50 JV agreement for the proposed 500 MW power project in Sri Lanka by April 2008. The project costs US $ 500 million.

India and Sri Lanka, agreeing on a timetable for the project, have targeted to begin work on a feasibility report in April 2008, followed by signing of the power purchase agreement in August 2008.

The main plant contract will be awarded in June 2009.

The first of the two units of 125 MW each will be commissioned by April 2012, followed by the second in July 2012.

The project is likely to come up at Veloor in the Trincomalee district. NTPC is also considering projects in Nigeria.