India Hands Over First Payment to Sri Lanka for Power Projects

Colombo: Indian High Commissioner Santosh Jha on Thursday handed over the first payment for the hybrid power projects on three Sri Lankan islands off northern Jaffna that are being implemented under Indian grant assistance of USD 11 million.

The projects to install a hybrid renewable energy system in the Delft, Nainativu and Analaitivu islands are being implemented under Indian grant assistance.

"HC @santjha handed over 1st payment for Hybrid Power Projects in Delft, Nainativu and Analaitivu islands to Secretary, Ministry of Power and Energy, Dr Sulakshana Jayawardena and Chairman, Sri Lanka Sustainable Energy Authority (SLSEA)," the Indian High Commission here said in a post on X.

It said the project is aimed at addressing the energy needs of the people of the three islands that are not connected to the national grid.

The three islets are located close to Tamil Nadu.

The Memorandum of Understanding for the project was signed in 2022. It replaced the Chinese venture initially awarded the contract following objections raised by India.

In 2021, China suspended the project to install hybrid energy plants, citing “security concern” from a “third party”, amid reports of India raising concern over its location.

Initial work has commenced at the three sites, and the project is scheduled to be completed by early March 2025 and handed over by late April 2025, according to the newswire.lk news portal.