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* Indian company to set up power transmission link to Sri Lanka
Tue, Dec 29, 2009, 05:10 am SL Time, ColomboPage News Desk, Sri Lanka.

Dec 29, Colombo: India's largest electricity transmission company is to sign a memorandum of understanding (MoU) with the Ceylon Electricity Board to set up a power transmission link to trade India's surplus power to Sri Lanka.

Powergrid Corporation of India Ltd (PGCIL) hopes to start the work on the project to set up the 285-km high-capacity power transmission link by February or March next year. The 492 million dollar project is expected to be completed by 2013.

"The work on the project should begin after the MoU is signed. It will take us two-and-a-half to three years to complete this project," said S K Chaturvedi, chairman and managing director of Powergrid to the Business Standard.

The power link will include an undersea submarine cables link for 50 km. The Indian company along with the CEB is to lay down undersea cables in the Gulf of Mannar between Rameshwaram in Tamil Nadu and Thalaimannar.

The link will connect overhead to the southern grid in Madurai in India. In Sri Lanka an overhead transmission line will be connected to the power grid at Anuradhapura.

When completed the subsea line would initially be able to provide 500 Mw to Sri Lanka's grid and India will have the opportunity to trade its surplus power.

The transmission link will pave the way for future trading of electricity between the two countries, Chaturvedi said.

Powergrid had carried out a feasibility study of the project last year and had found the installing of the transmission lines to be feasible Business Standard reported. The company had already received the approval from the Indian Ministry of External Affairs. Sri Lankan government had given its approval to the transnational power link in July last year.

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