Losses amounting to Rs. 18,368.89 million have been incurred due to the use of substandard coal and emergency coal purchases, according to Samagi Jana Balawegaya Parliamentarian S. M. Marikkar.

Addressing Parliament today (20), MP Marikkar said the findings were revealed in an investigation conducted by the Sectoral Oversight Committee on Infrastructure and Strategic Development.

He made the remarks while presenting a report prepared by a committee appointed under the leadership of the Additional Secretary to the Ministry of Power to investigate the use of imported coal stocks without proper quality inspections.

According to the report, additional costs were incurred due to the increased use of substandard coal, additional maintenance work, ash transportation and reduced electricity generation.

MP Marikkar said the use of substandard coal had resulted in a loss of Rs. 7,099 million, while additional maintenance costs amounted to Rs. 80.4 million. A further Rs. 13.1 million had been spent on transporting excess ash.

He also stated that the loss of 300 megawatts of electricity generation had necessitated the purchase of alternative electricity at a cost of Rs. 8,572 million.

In addition, emergency purchases involving five coal shipments had resulted in a loss of Rs. 2,284 million, while a further Rs. 402.8 million had been lost due to delays involving an emergency coal shipment, he said.

However, MP Marikkar noted that the calculations did not include the Rs. 100 subsidy provided by the government amid rising global diesel prices or the losses borne by the Ceylon Petroleum Corporation.

He said the relevant parties had been instructed to calculate these additional costs and losses as well.

Accordingly, the total loss identified so far stands at Rs. 18,368.89 million, MP Marikkar informed Parliament today.