Sunday, April 20, 2008

Agreement reached on power plant site in Sri Lanka

India has finally agreed to locate the 500 MW coal-based thermal plant of the National Thermal Power Corporation (NTPC) in Sampur town in Trincomalee district.

The town was wrested by the Sri Lanka military from the LTTE in September 2006,

According to reliable sources, the decision was conveyed by New Delhi to the Mahinda Rajapaksa government. Though India and Sri Lanka signed an agreement in December 2006, there was no unanimity between the two sides on the exact location of the plant.

Sri Lanka identified Sampur as a possible location, though an NTPC team preferred a site near the Indian Oil Corporation (IOC) oil complex, close to Trincomalee harbour.

The move locate the power plant at Sampur triggered a controversy with the pro-LTTE Tamil National Alliance raising political and environmental objections.

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