As part of efforts to deepen bilateral economic partnership, notably through cooperation in the renewable energy sector, Sri Lanka and India have signed a deal to establish a 100MW solar power facility in the island nation’s eastern port town of Trincomalee. The signing ceremony for the plant in Sri Lanka’s Eastern province took place on Friday at the Ministry of Finance.
The Joint Venture and Shareholders’ Agreement (JVSHA) for the Trincomalee Power Company Limited (TPCL) has been signed, according to the Indian mission. TPCL is a joint venture between India’s National Thermal Power Corporation (NTPC) Limited and the Ceylon Electricity Board (CEB) for the development of a 100MW solar power plant at Sampur.
“India’s ability to respond to Sri Lanka’s priorities in a thorough and mutually advantageous manner is demonstrated once again by the signing of this JVSHA,” it added.
“With the implementation of the USD 100 million Line of Credit granted by India to Sri Lanka for the development of solar power projects, our collaboration with Sri Lanka in this arena would only get stronger.”
“Similarly, there is strong private sector interest on both sides for renewable energy collaboration, which is expected to grow in the coming years,” the statement continued.
A deal with NTPC to develop a thermal power station in Sampur was scrapped in 2013.
Sri Lanka is experiencing its biggest foreign exchange crisis in history since the virus has decimated the country’s tourism and remittance profits. By December, the reserves position had dwindled to less than a month’s worth of imports, or just over USD 1 billion.
The public has been experiencing a lack of numerous essentials in recent months as a result of the foreign exchange crisis. In addition to the expected power outages, import limitations to save money have put a strain on cooking gas and fuel supply.
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Resource: Economic Times
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