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Coal supply: Govt. scrambles to pay for order

23 Oct 2022

   By Maheesha Mudugamuwa The supply of coal to the Norochcholai Power Plant from December remains uncertain, with the coal stock maintained by Sri Lanka this year expected to run out later this week (28), The Sunday Morning learns. The Norochcholai Power Plant generates 40% of the national electricity demand.  However, it is understood that the Government has secured four coal shipments and made full payments for only one, which is expected to arrive this week (25), bringing much-needed relief to the energy sector. The Sunday Morning understands that if all four shipments reach Sri Lanka, the coal they carry will be sufficient to power Norochcholai till the end of November, provided the troubled power plant does not break down again. It is learnt that a part payment for yet another coal shipment will be made this week by the Lanka Coal Company (LCC), but the major part of the payments is yet to be done for the scheduled shipments. Speaking to The Sunday Morning, LCC General Manager Namal Hewage said the company had already made the full payment for one shipment which would begin unloading on Tuesday (25). “The remaining coal will be enough till the end of this month and once the unloading commences on 25 October there will be sufficient coal to run the power plant,” he said. According to Hewage, the LCC had paid a total of around $ 18 million for the shipment to be delivered on Tuesday (25). The next shipment will arrive on Friday (28) and the successive shipments will arrive every five days. “We have paid 30% of the total amount for three shipments and yet another 30% will be paid this week for the fourth shipment. Once we receive the request for the full payments on arrival, the remaining 70% payment will be made,” he added. “The 30% payment is around $ 6 million for each shipment.” As per LCC statistics, the country has paid $ 36 million for coal so far, with another $ 36 million still pending for three shipments. The four shipments carrying a total of 240,000 MT of coal will only be sufficient to generate electricity for about a month, which risks another power crisis by end-November, if more shipments are not secured.   As learnt by The Sunday Morning, Sri Lanka requires around 25 shipments to supply coal for the Norochcholai Power Plant till 15 May 2023. The Norochcholai Power Plant contributes 900 MW to the national grid. Currently, a 300 MW generator is undergoing a major overhaul and is expected to be connected to the grid by the end of this month. Meanwhile, when contacted, Ceylon Electricity Board (CEB) Chairman Nalinda Ilangakoon said that payments were gradually being made for the coal shipments. Public Utilities Commission of Sri Lanka (PUCSL) Chairman Janaka Ratnayake earlier told The Sunday Morning that the length of the power cuts would be decided on the availability of coal after 25 October. “The commission is not worried about the mode of procurement. Our intention is that we have sufficient coal for electricity generation,” he said, adding that as of now there was no issue.


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