Ahead of Finance Minister Basil Rajapaksa’s Indian visit next week to finalise a US$ 1 billion credit line, India has inked a joint venture and shareholders’ agreement (JVSHA) with Sri Lanka to develop a 100 MW solar power plant in Sampur in the Trincomalee District.

Sri Lanka and India earlier had agreed to build a 500 MW coal power plant in Sampur, but the 2015-2019 Yahapalana regime backed away from the project.

India has been having strategic interests in Trincomalee from the early 1980s, where one of the world’s best natural ports is located. India this January bagged a deal to jointly develop the oil tank farm in Trincomalee with State-run Ceylon Petroleum Corporation.

The Indian High Commission in Colombo said the JVSHA was signed last Friday (11) for Trincomalee Power Company Limited (TPCL), a joint venture between India’s State-run National Thermal Power Corporation Ltd (NTPC) and Sri Lanka’s State-owned Ceylon Electricity Board (CEB), for developing a 100 MW solar power plant at Sampur.

“Our cooperation with Sri Lanka in this domain will only become stronger with the implementation of the US$ 100 million line of credit offered by India to Sri Lanka for development of solar power projects in Sri Lanka,” a statement by the Indian High Commission in Colombo said.

It also said there is significant interest among private sector on both sides for cooperation in renewable energy, which is likely to increase in the coming years.

The signing ceremony took place at the Ministry of Finance in the presence of Finance Minister Basil Rajapaksa and Indian High Commissioner Gopal Baglay.

The signatories to this tripartite document included Narinder Mohan Gupta, Head of International Business Development, NTPC, M.M.C. Ferdinando, Chairman of the CEB, and N.S. Ilangakoon, Vice-chairman (CEB) and Chairman TPCL.

During the visit of Finance Minister Basil Rajapaksa to India last year, discussions took place on enhancing investments from India in various sectors in Sri Lanka that would contribute to growth and expand employment. “The Sampur Solar Power Project is an important step in this direction,” the High commission pointed out.

India is committed to expanding the role of renewable energy and helping build cleaner, greener and climate resilient societies.

At the international level India has provided institutional solutions such as the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure for Climate Adaptation.