India keen to speed up power grid link talks with Sri Lanka
India is keen to fast-track longstanding talks with Sri Lanka on setting up a power grid link between the two neighbours for electricity trading, especially renewable energy.
The aim is to eventually sign a memorandum of understanding between state-owned Power Grid Corporation of India and Sri Lanka's Ceylon Electricity Board, said people familiar with the matter. «Discussion is still going on with the Sri Lankan government on the grid connectivity project,» an Indian government official said. The grid connectivity project is being planned through both overhead and under-sea cables, a second official added.
Power Grid didn't respond to ET's queries.
The cross-border interconnection plan has been under discussion for nearly two decades, but high project cost has made it unviable. Discussions got a fresh thrust last year amid India's plans to have grid interconnectivity with countries such as Saudi Arabia and UAE. After getting a new direction in the talks last fiscal, the Ceylon Electricity Board assigned a financial analysis study to PwC India for assessing the likely economic benefits of the project to Sri Lanka. PwC's draft report had suggested the link to be financially beneficial, as reported earlier by ET.
The study had suggested a mix of long-term, medium-term, and short-term tie ups for securing power from various available sources. Sri Lanka's power and energy minister Kanchana Wijesekera told ET in February that technical feasibility studies have been done and a joint consultant for investment decisions
