India has will locate the 500 MW coal-based thermal plant of the National Thermal Power Corporation (NTPC) in Sampur town in Trincomalee district, the Hindu reported yesterday (April 20).

The project, involving an investment of $500 million, is to be implemented by a joint venture company in which the NTPC and Ceylon Electricity Board would each hold 50 per cent stake and funded with a debt equity ratio of 70:30.

Official sources said the power plant would substantially boost economic relations between the two countries. For Sri Lanka, this was one of the largest ever infrastructure investment and the project would augment its power capacity by 20 per cent.