Acting on a proposal made by Economic Development Minister Basil Rajapaksa, the cabinet of ministers yesterday has decided to recognize the 2x250 MW capacity coal power project at Sampoor as a Strategic Development Project.

The joint venture partners for this project are the Ceylon Electricity Board and the National Thermal Power Corporation Ltd. of India at an investment of US$500 million.

Cabinet has approved the publishing of notice in the gazette as required and to place it before parliament in terms of the Strategic Development Project Act.

Despite the concerns raised by the power sector experts, the government had decided to proceed with the plant and last September completed negotiations with the National Thermal Power Corporation (NTPC) of India.

The construction is to begin this year and the power generation is to be linked to the national grid in 2017.