No loss from substandard coal shipment; USD 2.1 million fine imposed: Lanka Coal Company

Colombo, Jan. 28 (Daily Mirror) - Claiming that a fine of USD 2.1 million has been imposed on the Indian supplier responsible for supplying substandard coal, General Manager of Lanka Coal Company Namal Hewage said that no loss has been caused to the country due to the substandard coal shipment.

He told a news conference that only the first shipment was found to have substandard coal according to the reports and that the second shipment has no issues.

Hewage said the report of the thrid shipment is yet to be received.

Responding to a question, Chairman of Lanka Coal Company Jayantha Rathnayake said that according to the contrat, the Indian supplier is set to provide 25 shipments and that the contract can be cancelled only if two consecutive shipments are found to be substandard coal. 

He said the second shipment had no issues, whereas the first shipment was substandard and added that the third and fourth shipments are still being unloaded.

Additional General Manager Generation (Covering) Eng. Ramya Gunarathne said approval has been received to go for emergency procurement if the contract was to be cancelled.