NTPC, Ceylon power authority to set up 300 MW LNG project in Sri Lanka

New Delhi: State-run NTPC Ltd is going to set up a 300 MW LNG power project in Kerawalapitiya in Sri Lanka. In order to do this, NTPC will incorporate a joint venture company along with Sri Lanka's Ceylon Electricity Board and the two have signed an agreement for the same on Friday. In a regulatory filing to the stock exchanges on Friday, NTPC said, "… We wish to keep you informed that on 25th October 2019, NTPC has entered into a Joint Venture & Shareholders Agreement with the Ceylon Electricity Board for incorporation of 50:50 Joint Venture Company for development of 300 MW ±15% LNG power project at Kerawalapitiya, Sri Lanka."

Composition of the board of NTPC Sri Lanka JV

The board of the joint venture company shall comprise not less than six and not more than 10 Directors. Till such time, as a party holds at least 40 percent of the share capital, the parties hereto shall continue to remain entitled to appoint an equal number of nominee I Directors on the Board, subject to a minimum of at least three (3) Directors each, NTPC said. "Equity shares to be issued at face value as per the Joint Venture & Shareholders Agreement and shall be of one class," the filing said.

The backdrop

The news comes as the state-run company announced earlier this month that with the commissioning of a unit of 660 MW at Tanda Super Thermal Power Station in Uttar Pradesh and another unit of 660 MW at Khargone Super Thermal Power Station in Madhya Pradesh, the total installed capacity of NTPC and NTPC group had gone up to 48,645 MW and 57,106 MW respectively.