NTPC mulls exit from Sri Lanka venture
and the project is unable to make any headway. “In view of the slow progress in the development of the project, NTPC has proposed to bring back two senior level executives posted in Sri Lanka for this project,” a top power ministry official said. The company did not reply to an e-mailed questionnaire in this connection, but a source in the PSU said that Roy Choudhury is upset on the way CEB is dragging its foot. He pointed out that the project was planned and furthered as part of growing bilateral relations between India and Sri Lanka and exuded confidence that CEB would not insist on raking up settled issues.
On January 7, the CEB chief had written to Roy Choudhury saying that certain changes need to be incorporated in the existing PPA including downward revision of operations and maintenance cost of the proposed power plant to Rs 20.5 lakh per MW each year from the currently Rs 38.92 lakh. NTPC has protested saying the estimate on this cost is based on its similar sized plants in India and the CEB had been apprised of the same in advance.
Abeywickreme has also demanded that the current returns on investment should also be down scaled to 12 per cent return on equity as against 18 per cent post tax return on the equity base. “This is non-negotiable as the RoI was agreed the government of Sri Lanka and the CEB in 2006 and is very fundamental to NTPC’s investment decision,” the power
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