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Current Affairs

Indian power projects in Sri Lanka

Date: 30 March 2022 Tags: India & World

Issue

India will be constructing hybrid power projects on three islands off the coast of Jaffna in Sri Lanka.

 

Background

The same location was earlier allotted to China for power projects but was revoked after India raised objections.

 

Details

  • The deal was signed during a meeting between visiting External Affairs Minister (EAM) S. Jaishankar and his Sri Lankan counterpart G.L. Peiris.

  • This will be the third Indian power project after National Thermal Power Corporation’s solar venture, and the Adani Group’s renewable energy projects.

 

The agreement with China

  • Earlier, the renewable energy project was granted to Chinese company Sinosoar-Etechwin, backed by Asian Development Bank.

  • It was to be set up in Nainativu, Delft or Neduntheevu, and Analaitivu islands, which were located in Palk Bay.

 

India’s opposition

The proposed location was barely 50km off the Indian coast in Palk Bay. It threatened India’s maritime security.

 

New proposal

  • India has proposed a grant to carry out the project whereas the Chinese project was to be developed through loans.

  • The Sri Lankan government had kept the project in suspension, unable to choose a side for carrying out the project.

 

NTPC solar project

  • NTPC and Ceylon Electricity Board (CEB) will jointly set up a 100 MW solar power plant in Sampur, in Sri Lanka’s eastern Trincomalee district.

  • India has offered $ 100 million Line of Credit to Sri Lanka for development of solar power projects.

 

Adani Group’s renewable energy project

  • The Adani Group has signed agreement with Sri Lankan government to develop two renewable energy projects in Mannar and Pooneryn in the Northern Province.

  • It will invest about $500 million and the combined power generation capacity will be 500MW.