NTPC says power projects in Sri Lanka, Bangladesh on track

•  Rubbishes reports of losing projects to China in the wake of current political developments

The Business Standard: Undeterred by current political developments in Sri Lanka and Bangladesh, NTPC is quite firm to pursue development of imported coal-based power projects in these countries.

The company has rubbished reports appearing in a section of press relating to losing the projects to China.

NTPC and Sri Lankan team held talks in New Delhi to discuss changes to the power purchase agreement (PPA) and the implementation agreement for the 2x250 MW imported coal-based power project at Sampur in Trincomalee district, Sri Lanka. These negotiations took place close on the heels of India’s decision to vote in favour of a US-sponsored resolution censuring Sri Lanka on its human rights record and the subsequent postures from political parties in both the countries.

Similarly, NTPC is also not perturbed over the present situation due to the faceoff between the ruling and opposition parties in Bangladesh. The company is going ahead with the development of 2x660 MW imported coal based project at Khulna division of Bangladesh.

A NTPC spokesperson told Business Standard: “In Sri Lanka, NTPC is going ahead with the proposed 2x250 MW coal based JV Project in Trincomalee, Sri Lanka. A JV Company (Trincomalee Power Company Limited) between NTPC and Ceylon Electricity Board (CEB) has already been incorporated and the project agreements including Power Purchase Agreement are expected to be signed soon.”

NTPC and CEB had signed an agreement in 2011 to set up a coal fuel-based 500 MW plant at a cost of over Rs. 4,000 crore at Sampur.

NTPC’s team led by Chairman and Managing Director Arup Roy Choudhury was in Sri Lanka in February and held talks with the authorities there with regard to project at Sampur. Sri Lanka’s Treasury Secretary P.B. Jayasundera had already dismissed news reports that NTPC was pulling out of the project.

As far as project in Bangladesh is concerned, the NTPC spokesperson said: “NTPC is going ahead to develop a 2x660 MW imported coal-based project at Khulna division of Bangladesh in joint venture with Bangladesh Power Development Board (BPDP). NTPC and BPDP have already signed a JV Agreement in January 2012. Feasibility report for the project has been finalised. The project agreements like PPA are expected to be signed soon.”

It must be mentioned here that NTPC, with total installed capacity of 40,674 MW (including JVs), has set a target to have an installed power generating capacity of 128,000 MW by the 2032.