Colombo:
The Indian High Commission right here has rejected Sri Lankan power minister’s claim that the deal amongst the two nations on the 99 World War II-era Trincomalee oil tanks leased to the Indian Oil Corporation has been scrapped.
In a statement, the mission stated, “there is no truth in reports in some sections of the media that the understanding between India and Sri Lanka on jointly developing and operating the Upper Tank Farm at Trincomalee has been scrapped.”
Energy Minister Udaya Gammanpila announced on Wednesday that Sri Lanka will re-obtain 99 World War II-era oil storage tanks leased to IOC in the eastern port district of Trincomalee.
Gammanpila told a gathering at the Colombo north suburb of Kolonnawa that talks with the Indian High Commissioner in Colombo on this challenge concluded final Sunday.
“I am happy to state that the Indian High Commissioner was very flexible at the talks. He ignored the conditions mentioned in the agreement signed in 2017 in order to be helpful to us,” Gammanpila stated, referring to his discussions with High Commissioner Gopal Baglay.
The Indian mission stated that these reports did not appropriately portray remarks created by the minister of power at an occasion on February 17, 2021. The minister has himself clarified the matter in detail today by way of a press briefing.
As indicated in the minister’s briefing also, the two governments have consulted every single other to discover mutually acceptable modalities for jointly creating and operating the facility in accordance with current bilateral understandings, like the MoU of 2017, it stated.
India appears forward to formal discussions on the matter, and expeditious implementation of their outcome to mutual advantage,” the statement stated.
Gammanpila, whilst clarifying his comments, on Thursday told reporters that tanks will be operated beneath a Sri Lanka government controlled entity jointly with an Indian partnership.
The Trincomalee Harbour is one of the deepest all-natural harbours in the globe. It was created by the British in the course of World War II.
These tanks will have the capacity to provide bunkering facilities to the ships sailing in close proximity to Trincomalee, according to reports.
Sri Lanka in 2003 had leased out 99 oil tanks to the IOC for 30 years for an annual payment of USD one hundred,000.
The IOC was also offered one third share of the Sri Lankan government entity, Petroleum Storage Limited. However, the Ceylon Petroleum Corporation (CPC) trade unions had been pressing for the takeover of the tanks.
Initially, the CPC wanted to create 25 of the tanks by investing USD 25-30 million. The CPC maintains that it will enable them to strengthen their oil storage and distribution in the north and eastern provinces whilst enabling stock upkeep to suffice 2-3 months.
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