July 29, Colombo: The first phase of construction of the Norochcholai Power Plant at Puttalam in northwestern Sri Lanka is nearing completion and expects to be operational in November.

The first coal firing at the coal power plant is scheduled for the last week of November and the authorities expects the delivery of the first coal shipment at the site in the first week of November 2010.

On the recommendation of Minister of Power and Energy Patali Champika Ranawaka, the Cabinet today gave approval to issue a Government Guarantee on behalf of Lanka Coal Company (LCC) enabling LCC to open a letter of credit to the value of Rs.1 Billion, taking into consideration, a possible changes in coal price index in November 2010.

The cost of first shipment of 65,500 MT of coal will be US$ 7 million.

The first phase of the Norochcholai coal power plant is to inject 300 MW to the main grid by 2011 while the second phase is scheduled to be completed by 2013 and is expected to inject 600 MW to the national grid.