India grants ‘exceptionally soft’ loan facility for power, railway projects

India is to grant an ‘exceptionally soft’ loan facility to Sri Lanka for several railway projects and the proposed coal power plant at Sampur.

During his visit beginning yesterday (June 9) Sri Lanka’s President Mahinda Rajapaksa held discussions with Indiaon several issues and this loan facility is among the other agreements signed between the two neighbours.

The joint declaration stated that the two leaders directed that the relevant agreements on the lines of credit for requisite amounts be concluded within two months, so that there is no delay in the commencement of the projects.

The two leaders were also briefed on the progress in discussions between the National Thermal Power Corporation of India and the Ceylon Electricity Board of Sri Lanka on the establishment of a joint venture for building a 500 MW coal-fired power plant at Sampur (Trincomalee), incorporating environmentally friendly technologies, with the Government of Sri Lanka providing the requisite infrastructure support. The concerned parties have agreed to complete their discussions on the Joint Venture Agreement, the Power Purchase Agreement, the Agreement with the Board of Investment of Sri Lanka, the Implementation Agreement and other relevant arrangements within three months, so that the work on the project can commence without delay.