September 1, 2024
As of August 31, 2024, the coal stock at the Norochchole coal plant is reported to be sufficient for only 35 more days due to delays in the tender process for coal supply. The Ceylon Coal Company has revealed that the delay in awarding the long-term tender for 50% of the plant’s coal requirements for the 2024/25 and 2025/26 periods, coupled with rapidly depleting existing stocks, has resulted in the current situation.
Shehan Sumanasekara, Chairman of the Ceylon Coal Company, stated, “Our first shipment will arrive on September 6, earlier than expected. We will officially start the season on September 10 because even if the vessel arrives on the 6th, we will not unload until the 10th.” He noted that the remaining nine consignments from the previous season are being received, with approximately 540,000 metric tons expected to be sufficient until November.
Sumanasekara explained, “With our current stocks, we can cover until October 5. With the additional 540,000 metric tons, we should have enough stock for roughly another two months and 10 days, extending to around December 20 or 25.”
In response to the situation, it is reported that the Cabinet has consulted the Attorney General about potentially canceling the current tender and awarding the contract to the existing supplier at proposed lower prices.
The contribution of coal from the Norochchole plant to the national grid has increased to 40.3%, with the plant supplying nearly 900 MW of power, which accounts for about 40% of the country’s total electricity generation.
