Govt. justifies emergency coal purchases



By Ajith Siriwardana and Yohan Perera

Colombo, Feb. 4 (Daily Mirror) - Amidst Opposition claims that the country will have to incur losses if the government will have to go for emergency coal purchases, Power and Energy Minister Kumara Jayakody said yesterday emergency coal purchases will not incur losses adding that only 300,000 metric tons of coal will be procured under emergency purchases.

The Minister told Parliament that Cabinet approval was obtained for emergency coal purchases to avert a possible energy crisis if coal shipments contained inferior quality coal.

He said the first and the third coal shipments had contained coal below the specifications of the contract and that reports of the fourth and fifth shipments were still pending.

The Minister said if the supplier continues to supply coal below specifications, the government will not hesitate to default the supplier.

Opposition MP Ajith P Perera said the government has obtained Cabinet approval to go for emergency coal purchases and that it will be an additional cost to the country.

"If emergency purchases were made, we will have to go for current global prices. That will be a loss to the country. We question if the Minister bears the additional costs the country has to bear due to the policy decisions of the Minister," he said.

The Minister said Cabinet approval was obtained in case the pending shipments contained coal below specifications. "We have taken steps to obtain permission from the National Procurement Commission as well. Only 300,000 metric tonnes will be procured under emergency purchases. It will not be a loss. 300,000 metric tonnes of coal will only be sufficient for one plant to run for one month," he said.

 


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