Explosive allegations claim substandard coal imports at Norochchola generated tens of millions in profit for a private supplier while the government imposed only a token fine, leaving taxpayers and electricity consumers to bear the loss.
The government and the public have suffered serious financial and technical losses due to the import of substandard coal for the Norochchola power plant, alleges Pubudu Jayagoda, Education Secretary of the Frontline Socialist Party. He claims the company involved earned over 30 million dollars from a single shipment, raising urgent concerns about corruption, energy security, and accountability in Sri Lanka’s power sector.
Jayagoda explained that two grades of coal, Q1 and Q2, are relevant to the contract. By allegedly supplying lower quality coal instead of the specified high grade coal, about 20 dollars per metric ton is being siphoned off. A vessel carrying 60,000 metric tons would therefore generate an estimated 30 million dollars in profit. With two such ships already unloaded, he says profits have climbed to 60 million dollars.
He warned that inferior coal damages plant machinery, increases maintenance costs, and harms the environment. Comparing it to using 95 petrol in a vehicle designed for 92 petrol, he said operating machinery outside specifications nullifies responsibilities and risks breakdowns. As a result, expensive alternatives like diesel may be required, pushing electricity generation costs from Rs. 20 to 21 per unit to nearly Rs. 100 in the private sector.
He criticized the two million dollar fine as merely a contractual penalty, not compensation for damage. Calling it inadequate, Jayagoda urged a truly independent investigation and direct presidential intervention to ensure accountability.
