India to match Korean LNG power plant proposal

By Chathuri Dissanayake

The Indian Government is willing to consider matching the proposal given by Korean Government for the Liquefied Natural Gas (LNG) plant Cabinet Spokesperson Minister Rajitha Senaratne said.

Following a meeting President Maithripala Sirisena had with the Indian High Commissioner the Indian Government has agreed to consider rates in the Korean proposal, which Senaratne termed as ‘favourable’ to Sri Lanka.

He said that after discussion the Cabinet this week decided to work with India to set up an LNG power plant in Sampur in partnership with the Japanese Government, despite receiving a proposal from Korean Government for the same project.

“We discussed this at length at the Cabinet meeting. The Korean Government has given us a proposal. But when President Sirisena visited India he told Prime Minister of India that coal power cannot be set up. He said as the Minister of Environment such a plant cannot be allowed because it is not environment friendly. Therefore he suggested a proposal on LNG. But India is not so advanced on LG plants, so that is why we have suggested they work in cooperation with Japan,” Senaratne told reporters yesterday at the Cabinet briefing.

He said that following discussions Cabinet decided to work with India on a proposal partnering with Japan, which has advanced technology. As the Korean proposal is more beneficial the Government has told the Indian High Commissioner to consider the rates of the Korean proposal, he said.

“The world’s best technology for LNG is in Japan and Korea. The Korean proposal which has come is even more favourable than India’s,” he said.  Explaining reasons behind the decision to award the project to the Indian party despite receiving a better proposal from Korea, he said the decision was taken in light of diplomatic relations.

“We have to consider the relationships we have with these countries. We cannot be fighting with every country. When India said it would build the coal plant we stopped and told it to bring in LNG. Now we cannot stop that as well. There are things that we have promised at State level.”

Cabinet Co-Spokesperson Dayasiri Jayasekara claimed that it was too premature to discuss the outcome of the Kerawalapitiya power plant despite charges that the tender process has been rigged.

“Kerawalapitiya plant was not discussed. The tender now has to go to PAB (Procurement Appeal Board) in the Ministry, and post Ministry-level discussions, it will come to Cabinet level,” he said.