Coal Company Chief requests over Rs. 12 billion to ensure operations at Norochcholai plant

Lanka Coal Company Chairman Shehan Sumanasekera has requested funds from Power and Energy Minister Kanchana Wijesekera to purchase coal stocks expressing concerns about the continued operations of the Norochcholai power station if the necessary funding for coal procurement is not received.

The Lanka Coal Company Chairman has requested $ 12.32 million or around Rs. 4.56 billion from the Minister to purchase coal.

“A total of Rs. 15.3 billion immediately for the procurement of coal for the upcoming week. We hope the Central Bank will provide the required amount in dollars,” he told journalists on Saturday explaining the dire financial situation to secure sufficient stocks to operate the Norochcholai power plant.

He raised concerns about the continuation of operations at the Norochcholai power plant if the required funds for coal purchase are not obtained.

Sumanasekera cited two payments that had previously been delayed due to a shortage of finances as evidence of the severity of the coal issue.

“Payments for such shipments are typically made in two instalments ─ 30% at the time of shipping and 70% when the coal is being unloaded. We are required to make these payments for three cargoes of coal from 30 January to 3 February. The initial instalments for the other two ships, which were due on Thursday and Friday of last week, have not yet been paid. We have only paid the first instalment of 30% of Rs. 1.35 billion for one shipment,” he explained.

He added that the situation is likely to become more complicated in the coming week as a large sum of Rs. 10.74 billion is required for the coal procurements scheduled for the period between 4th to 10th February.

Against this backdrop, Sumanasekera insisted an immediate solution be found for this, before the power plants run out of coal.