Discussions are underway to transfer the Norochcholai coal power plant to the Chinese company in lieu of the massive US $ 1350 million loan obtained from that country to construct the project, informed sources said yesterday.

The project was carried out by China’s C.M.C.R. Company and according to sources the Ceylon Electricity Board had put forward two alternatives to cover up the rising electricity generation cost- to increase energy prices or to transfer the coal project to the Chinese company- instead of settling the loan. It is learnt that the government is seriously considering the second option as a way of the present financial crisis.

The total capacity of the coal project is 900 megawatts with 300 megawatts being generated in the initial phase annually while the rest would come under the second phase of the project. Work on the project started in 2007. (Ranjan Kasturi)