India to set up $500m power plant in Lanka |
Pti, New Delhi
India's state-run National Thermal Power Corporation (NTPC) has signed a memorandum of agreement (MoA) with Ceylon Electricity Board (CEB) and Sri Lankan government to set up a 500MW coal-based thermal power plant in the neighbouring country.
The power plant would cost around USD 500 million and is expected to begin operations by 2011, and NTPC release said.
This would be the public sector company's first overseas project.
NTPC would shortly commence selecting a site for the plant in Trincomalee that would be funded at a debt-equity ratio of 70:30.
The 2x250MW project would be developed through a joint venture company between NTPC and Ceylon Electricity Board. The two companies would hold 50 percent equity each in the Joint Venture.
The MoA was signed Friday by NTPC Ltd CMD T Sankaralingam, Sri Lankan Power and Energy Secretary MMC Ferdinando and CEB Chairman Perera. Indian Power Secretary RV Shahi, Indian High Commissioner Alok Prasad were also present at the ceremony.