Substandard coal causing Rs.75Mn loss daily ?

It is alleged that Energy Minister Kumara Jayakody had intervened to stop the investigations against the coal tenders and from releasing an internal report from the Norochcholai Coal Power Plant 

Laboratory tests reveal that the calorific value of the imported coal stock was below the required standard of 19,100 kilocalories (kcal) 

ECA reiterates its call for transparency and demands that all related reports be released to the public 

Investigations reveal that the imported coal stock had an energy generation efficiency ranging between 11 and 21 per cent

The Electricity Consumers’ Association (ECA) has urged the government to make public the survey reports obtained from India and the Lakvijaya Coal Power Plant in Norochcholai, claiming that the Ceylon Electricity Board (CEB) is incurring a daily loss of Rs. 75 million due to substandard coal used for power generation.   

ECA General Secretary Sanjeewa Dhammika told the media that Energy Minister Kumara Jayakody had allegedly intervened to stop investigations into the coal tenders and to prevent the release of an internal report from the Norochcholai Coal Power Plant, and had instructed testing laboratories in India to suspend further investigations.   

“Although attempts were made to suppress the findings, the report related to the coal tender has now been obtained,” Dhammika said. According to the ECA, laboratory tests revealed that the calorific value of the imported coal stock was below the required standard of 19,100 kilocalories (kcal).   

He said three shipments of coal had been imported. The first shipment was received between January 2 and 9, while the second shipment was not used. The third shipment, however, was used for power generation, resulting in significant losses.   

“Due to the use of coal from the third shipment, a loss of 15 megawatts (MW) was recorded from a single generator at the Lakvijaya Coal Power Plant. A total loss of 45 MW was reported from all three generators. Overall, around 100 MW of electricity was not generated, leading to a financial loss of approximately Rs. 75 million daily,” Dhammika said.   

He further noted that recommendations have stated that electricity generation should be rejected if output drops by more than 16 per cent. However, investigations revealed that the imported coal stock had an energy generation efficiency ranging between 11 and 21 per cent. 

The ECA reiterated its call for transparency and demanded that all related reports be released to the public to ensure accountability in the procurement and use of coal for power generation.   

Meanwhile, Minister Nalinda Jayatissa said that the coal stock brought for use at the Lakvijaya Power Plant is not of the required quality. He added that samples sent to India for testing were found to be deficient in the required kilocalories, raising concerns about its quality.   

Addressing the media in Kalutara, he said steps would be taken to recover fines from the company.   

“There has been no problem in the procurement process. After the first 60,000 metric tons were imported into Sri Lanka, the coal company sent samples to India for testing, and they were found to be lacking the required kilocalories. Therefore, a fine is being imposed, a double fine, in fact.   

The second 60,000 metric tons have already been unloaded, and samples will be sent for testing without issue. The third 60,000 metric tons are currently being unloaded. After unloading, the samples will also be sent for testing.   

There has been no problem in the procurement process. If the samples do not meet the required standard after being unloaded in Sri Lanka, the relevant party will be required to pay the fine.”