India, Sri Lanka to establish high-capacity power grid interconnection
Jul 21, 2023
New Delhi [India], July 21 : India and Sri Lanka have agreed to establish high-capacity power grid interconnection between the two nations to enable bidirectional electricity trade between the island nation and other regional nations.
The bilateral document released by the Ministry of External Affairs (MEA) said, "To establish a high-capacity power grid interconnection between India and Sri Lanka to enable bidirectional electricity trade between Sri Lanka and other regional countries, including the BBIN countries, which has the potential to not only bring down the costs of electricity in Sri Lanka but also help create a valuable and dependable source of foreign exchange for Sri Lanka."
The MoU on cooperation in developing renewable energy would develop Sri Lanka's significant renewable energy potential, including offshore wind and solar, according to the bilateral document. The MoU will enable Sri Lanka to achieve its target of generating 70 per cent of power requirements from renewable energy sources by 2030.
The two nations have agreed to expedite the implementation of the understanding reached on the Sampur Solar power project and LNG infrastructure.
"To expedite implementation of understanding reached on Sampur Solar power project and LNG infrastructure, and explore cooperation in green hydrogen and green ammonia through use of innovative technologies with an aim to increase renewable energy mix in power generation of Sri Lanka," the joint statement.
India and Sri Lanka have agreed to further develop Trincomalee as a national and regional hub of industry, energy and economic activity based on mutual understanding.
"That ongoing cooperation in development of Trincomalee Tank Farms is a reflection of our endeavour to develop mutually beneficial cooperation projects in Trincomalee area, and agreed to further develop Trincomalee as a national and regional hub of industry, energy and economic activity on the basis of mutual understanding," the bilateral document reads.
India and Sri Lanka have agreed to cooperate for the construction of a multi-product petroleum pipeline from the Southern part of India to Sri Lanka with the aim to ensure an affordable and reliable supply of energy resources to Sri Lanka.
The bilateral document further read, "To undertake mutually agreed joint exploration and production of hydrocarbons in Sri Lanka’s offshore basins with an aim to develop Sri Lanka’s upstream petroleum sector."
The two nations agreed to cooperate in the development of ports and logistics infrastructure at Colombo, Trincomalee and Kankesanthurai with an aim to consolidate regional logistics and shipping. India and Sri Lanka also agreed to resume passenger ferry services between Nagapattinam and Kankesanthurai.
The bilateral document released by India and Sri Lanka reads, "To cooperate in development of ports and logistics infrastructure at Colombo, Trincomalee and Kankesanthurai with an aim to consolidate regional logistics and shipping, as per mutual understanding."
It further reads, "To resume passenger ferry services between Nagapattinam in India and Kankesanthurai in Sri Lanka and work towards early resumption of ferry services between Rameshwaram and Talaimannar, and other mutually agreed places."
The bilateral document came as Prime Minister Narendra Modi and Sri Lankan President Ranil Wickremesinghe held delegation-level talks in New Delhi. Prime Minister Narendra Modi on Friday said that Sri Lanka has a special place in India's neighbourhood first policy and the security interests and development of the two countries are intertwined.
In his remarks to the media after talks with Sri Lanka President Ranil Wickremesinghe, the Prime Minister said they have agreed on the enhancement of air connectivity between the two countries.
“Sri Lanka also has an important place in both India's 'Neighbourhood First' policy and 'SAGAR' vision. Today we shared our views on bilateral, regional and international issues. We believe that the security interests and development of India and Sri Lanka are intertwined,” PM Modi said.
"We agree on the enhancement of air connectivity between India and Sri Lanka. To increase trade and travel by people, we have taken the decision to start passenger ferry services between Nagapattinam in Tamil Nadu and Kankesanturai in Sri Lanka,” he added.
