"We have reduced the heat-rate and the O&M terms," Sri Lanka's power ministry secretary M M C Ferdinando said.
Sri Lanka's former power minister Champak Ranawaka pulled the plug after CEB engineers discovered that the heat-rate (the guaranteed efficiency of the plant) on the first PPA was not good enough and operations and maintenance fees were too high.
The 500 MegaWatt coal plant to be built in Sampur, in northeastern Sri Lanka is estimated to cost about 600 million US dollars. It is will be 50 percent owned each by NTPC and state-run Ceylon Electricity Board, which is also the grid operator.
CEB chairman W B Ganegala said the revised agreement is expected to receive board approval as early as next week and it will be submitted for cabinet approval after that paving the way for the PPA to be signed.
Ferdinando said it may be possible to begin construction of the Trinco coal work in the second half of 2013.
The plant has been in the works since 2005, when Sri Lanka's East was still under a civil war.
Industry analysts and the public at a recent public hearing has warned the CEB not to acquire genarting plants by negotiation but go for open tender following the experience of expensive plants like that in Kerawalapitya.