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Khurshid arrives in Sri Lanka

India and Sri Lanka will sign agreements for a 500 MW thermal power project to be jointly developed by India's state-owned NTPC and the state-run Ceylon Electricity Board (CEB).

The plant, the second using coal to be set up in post-war Sri Lanka, is estimated to cost $600 million. The project would be developed by Trincomalee Power Co, an equal joint venture between NTPC and CEB.The India-Sri Lanka agreement would cover the areas of power purchase, land lease and coal supply. Khurshid will meet president Mahinda Rajapaksa and External minister GL Peiris to discuss the devolution of power to the northern province, a former war zone where Tamils are in an overwhelming majority.

Tamil National Alliance, the country's main Tamil party and which once backed the now vanquished Tamil Tigers, secured a landslide win in provincial elections held 21 September in the northern province.
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