Ceylon Electricity Board (CEB) and NTPC Limited, the largest power generation utility of India signed the Joint Venture and Shareholder Agreement today (6) in Colombo for setting up a 500 MW (2 X 250 MW) coal based power station at Sampur, Trincomalee.

The Project is a landmark in bilateral economic cooperation between India and Sri Lanka.

This Project will go on stream by 2016 and meet growing demand for power in Sri Lanka. Land for the project shall be provided by the Government of Sri Lanka to the Joint Venture Company on long term lease. The coal for the project shall be imported and supplied by Lanka Coal Company (LCC). The power generated shall be supplied to CEB through CEB grid system. The capacity of the Project may be enhanced by another 500 MW in future, Indian High Commission said in a release.

Speaking on the occasion Indian High Commissioner Ashok K. Kantha, said that it was the largest Joint Venture project being undertaken by the two countries. He noted that CEB and NTPC are premier institutions in their countries and have come together as equal partners to form the Joint Venture Company.

High Commissioner said that the cooperation between the two companies would take the bilateral economic cooperation to a new level.

The first coal power plant is set up at Norochcholai in the Puttalama district.