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Sunday, Dec 24, 2006
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Business Daily from THE HINDU group of publications Sunday, Dec 24, 2006 ePaper |
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New Projects Government - Foreign Relations Industry & Economy - Power Power link to Sri Lanka in 40 months: PowerGrid Anil Sasi
On cards Link being proposed between Madurai in Tamil Nadu and Anuradhapura in Sri Lanka Aimed at supplying up to 1,000 MW of power to the island nation
New Delhi , Dec. 23 State-owned transmission major Power Grid Corporation of India Ltd (PGCIL) estimates that it can set up a $450-million mega transmission power line being mulled between India and Sri Lanka in around 40 months time. According to a feasibility report prepared by PGCIL following consultations between the two Governments earlier on the project, the transmission utility expects the link being proposed between Madurai in Tamil Nadu and Anuradhapura in Sri Lanka to come up in around three years time once all clearances are in place, a Government official involved in the exercise said.
Feasibility Study
The link, aimed at supplying up to 1,000 MW of power to the island nation, has been under discussion as part of the BIMSTEC energy co-operation proposals. Both Governments have set up high-level steering committees, co-chaired by Secretary-level officers on either side, to kick-start the project. Senior officials from the Union Power Ministry, PGCIL and the Central Electricity Authority form part of the panel in India. Sri Lanka's Cabinet of Ministers had recently granted the go-ahead to its Energy Ministry to work on the project and the United States Agency for International Development is extending technical assistance to the Sri Lanka's Energy Ministry to carry out the feasibility study. Government officials indicated at the possibility of an agreement on the proposed link to be finalised and signed by the middle of next year. The whole concept of grid connectivity was mooted way back in the 1970s, with Sri Lanka looking at sources of alternative stable power supply.
Power Crisis
While Sri Lanka's electricity demand has been growing by around 10 per cent annually, the country's installed capacity has failed to keep pace. Sri Lanka's Central Bank has warned of an impending power crisis since there are no major power generation projects to come on board in 2007. Officials said Indian players could capitalise on the opportunity in commercial terms due to the prospect of getting higher tariffs from electricity supplies to the country. Sri Lanka uses diesel for nearly 65 per cent of its power generation — one of the most expensive power generating resource — resulting in comparatively higher tariffs, officials said. The cost of generation and supply in the country is around Sri Lankan Rupees 12-15 per unit (about Indian Rs 5-6.21 per unit), according to Ceylon Electricity Board data.
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