Substandard coal imports linked to Rs. 18.3 billion loss, Parliament told

Sri Lanka incurred an estimated Rs. 18.3 billion in losses and additional costs linked to substandard coal imports and shipment delays, S. M. Marikkar, Chairman of the Sectoral Oversight Committee on Infrastructure and Strategic Development told Parliament today.

The report, based on an investigation by an expert committee headed by the Additional Secretary to the Ministry of Energy, examined coal procurement procedures, quality discrepancies and their financial impact on electricity generation.

The findings attributed Rs. 7.099 billion to the use of substandard coal and Rs. 8.572 billion to additional electricity purchases because the required 300 megawatts of power generation was not achieved.

Other costs included additional maintenance, ash transportation and emergency coal procurement due to shipment delays, Marikkar said.

Marikkar also noted that the estimated Rs. 18.3 billion impact did not include costs associated with rising global energy prices or government subsidies provided locally. He added that the committee was instructed to make note of these costs as well. (Newswire)

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