The controversial Sampur coal power plant funded by India has been cancelled, the Attorney General’s Department informed the Supreme Court today.
Quoting the Secretary to the Ministry of Power and Renewable Energy, the Attorney General’s Department informed the court that the coal power plant will not be constructed in Sampur, Trincomalee.
This was announced when the Fundamental Rights Application filed by Environmental Foundation Limited (EFL) was taken up. EFL has objecting to the use of coal for the 500 MW power plant due to environmental concerns. The petition had cited long term health impact to the people living in the area, and the long term environmental repercussions along with certain discrepancies to the Environmental Assessment Report (EAR).
The power plant which was to be built by India’s state-owned National Thermal Power Corporation India was to be built at an estimated cost of US$ 600 million.
The MoU for the first 500 MW phase was signed in December 2006, between the Government of Sri Lanka, Ceylon Electricity Board and the National Thermal Power Corporation India. The Power Purchase Agreement, Implementation Agreement, BOI Agreement, Land Lease Agreement and Coal Supply Agreement were signed in October 2013 by relevant parties including the Government of Sri Lanka, the Ceylon Electricity Board and the Trincomalee Power Company Limited. The power station was originally expected to commence operation in late 2017.