India’s biggest power producer National Thermal Power Corporation (NTPC) has signed a deal with Ceylon Electricity Board (CEB) to build a 500 MW coal fired power station in Sri Lanka.

Each company will invest $250 million in the plant, which will be built at Sampur, Trincomalee.

Under the agreement signed in Colombo, Sri Lanka will provide 500 acres of land and other facilities including water for the project. Coal will be imported and supplied by Lanka Coal Company and will require the construction of a new jetty at Koddiar Bay. The subsequent power generated will be supplied through CEB’s grid.

The Sri Lankan government has stated that the Sampur coal plant will be the last thermal power plant in Sri Lanka until 2025.

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