Hemas ventured into the area of power generation at a crucial period, when the Government of Sri Lanka was actively encouraging private sector participation in power generation, due to its own inability to effectively meet the country's rising energy demands.   Hemas recognised the immense national importance of supplying power to the national grid, and sought out a partnership with technical experts, Lakdhanavi Limited to set up a power plant.  Hemas and Lakdhanavi collaborated successfully to establish Heladhanavi, a $62 million plant which is located in the town of Puttalam on Sri Lanka's western coastal belt.  Despite several initial challenges we were able to work closely with our JV partner and ensured that construction completed two months ahead of schedule.

In September 2004, Heladhanavi commenced operations, supplying 100MW to the national grid.  The plant is run on 180CST Grade furnace oil, which is purchased through a Fuel Supply Agreement with the Ceylon Petroleum Corporation.  A Power Purchase Agreement with the Ceylon Electricity Board (CEB) is in place to guarantee the sale of energy to the CEB.  A sovereign guarantee has also been given by the Government of Sri Lanka. The plant is managed by Lakdhanavi Limited through an Operational and Maintenance Agreement. The plant is driven by six 18V46 medium speed engines supplied by Wartsila OY of Finland - the market leader for medium speed engines with a solid sound track record.   Heladhanavi operates on a 24-hour basis, and the plant is located on a 66 acre property. The plant area, with the engine/power house, exhaust stack, storage tanks, fuel treatment plant, outdoor radiator bay, switchyard, fuel unloading station, piping and so on, occupy approximately 8 acres. In an effort to ensure minimum impact on the surroundings we have utilised the remaining 58 acres for a 'green belt', which assists in maintaining sound at a pre-specified decibel level.  An Environmental Impact Assessment Study (EIA) was conducted prior to construction, and all the necessary environmental approvals have been obtained from the provincial Environmental Authority.  The Authority also issues an Environmental Protection License (EPL) each year, based on conformity to stipulated conditions and regulations.  In addition noise levels are constantly monitored against pre-specified standards. Having made entry into power generation area through Heladhanavi, Hemas ventured into renewable energy space through the development of 2MW Giddawa Mini Hydropower Project (MHP) in Teldeniya, Kandy in early 2007. Built on Huluganga- one of the main tributaries of Mahaweli at a cost of Rs.400Mn, Giddawa MHP operates with two horizontal-axis Francis Turbines supplied by Wasserkraft Volkes AG of Germany.  The plant was commissioned and connected to the national-grid in October 2008. Operations and maintenance of the plant are handled by the full-time staff based at the plant site. Extending interest in the renewable energy area, Hemas recently commenced development of its second hydropower project at Deraniyagala in Kegalla District.  This 2.4MW project is expected to commence operations in mid 2011.