NTPC clarifies on news item regarding plans in Sri Lanka

With reference to the news item appearing in leading portal titled "NTPC overtake Infosys in terms of Market Cap, says may invest $500 Mn in Sri Lanka plant", National Thermal Power Corporation Ltd (NTPC) has clarified that the Company has been discussing with Government of Sri Lanka since the year 2005 a proposal for putting up of a power plant in that country. The Company had made the following announcement on June 27, 2005:

"1. To submit a proposal to the Government of Srilanka to set up a 900 MW Coal/LNG based Power Project in Srilanka on Build, Own, Operate (BOO) / Build, Own, Operate and Transfer (BOOT) basis.

2. To enter into an MOU with Government of Bihar and Bihar State Electricity Board for transfer of Muzzaffarpur Thermal Power Station, 2 X 110 MW at Kanti, District Muzaffarpur in Bihar to the proposed Joint Venture Company of the Company and BSEB."

In line with its expansion plans the Company has decided to submit a proposal to the Government of Sri Lanka to set up a 900 MW Coal / LNG based power plant in Sri Lanka.

The proposal is still under discussion and the Company is likely to sign a Memorandum of Agreement (MOA) with the Government of Sri Lanka shortly.

Source : Equity Bulls

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