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| Sunday, 24 October 2004 |
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Features |  |
| News Business Features Editorial
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We hope to go ahead with our plans - Susil
Q: What is all this fuss about the Indian Oil Corporation (IOC) owing money to the CPC? A: Yes. They have purchased some oil from the CPC and not made the payments. Q: Then how about the counter-charge made by the IOC that the CPC owes money to them? A: Yes, they have to get it from the Treasury and not the CPC. Q: Are you determined to go ahead with the Upper Kotmale and Norocholai power projects, regardless of the opposition? A: Yes. As for the Upper Kotmale project we have had several inter-ministerial sub-committees, and have now decided to go ahead with a compromised project. Q: What about the former, alternative 'Yorksford' Kotmale project which was to be funded by the Japanese earlier? A: This is only a suggestion on which a proper feasibility study has not been carried out. We have not used the Japanese funds. The original 'Yorksford' had been found to be unsuitable and an amended one suggested thereafter. This had not been studied yet, and to avert a further delay of about three years, we have decided to implement the compromised project. Q: How do you intend to face the objections on these projects? A: If we do not push forward these two projects immediately, we would definitely face an inevitable power crisis within the next four to five years. Therefore we will go ahead and address the issues which arise accordingly. Q: Apart from the Kotmale and Norocholai power projects, what others are in the pipeline to ease an impending power crisis? A: We intend to implement some 'Renewable Energy' projects such as 'Dendro', Bio mass and Mini-hydro when the proposal report is forwarded within a month. Q: Would there be a further rise in the electricity bills in the near future? A: I cannot say it now. The CEB is facing a financial crisis due to the tariff rates where the CEB purchases at a high price and sells at a lower one. So it depends on the deficit. Q: The CPC employees who comparatively enjoy high salaries already, have asked for a wage hike. Would you approve same? A: They normally ask like that. We will wait and see what has to be done. Q: The consumers when paying their electricity bills at Banks (including the state banks), are charged a Rs.15 commission per bill, despite the fact that it was to be abolished a long time ago. Why is this? A: To avoid the payment of commissions to banks, we intend to set-up our own collection centres, initially in the Western, Central and Uva province and later islandwide in all cities. The banks too, as a service would collect in parallel to our centres, levying a commission for their service. But the customers can always try to pay at our collection centres sans a commission. Q: Laugfs Gas purchases gas from the CPC at a subsidised rate and they could well afford to sell a cylinder to the consumer around Rs.600 to Rs.650. But they are not doing so. They have asked for a further increase of Rs.90 and the Consumer Affairs Authority (CAA) has permitted an increase of Rs.40. Why don't you interfere and bring the prices down? A: The CPC provides only 10 per cent of their requirement which is 50 tons, but their consumption is around 500 tons. However, I think they are using part of it for 'auto gas'. The contract which the CPC has with Laugfs is to supply gas and we have no right to compel them to use or not to use gas for any specific purpose. If we go for a new contract, then we may do so. My ministry cannot do anything about it at present. Q: What has been the outcome of obtaining oil from Iran and Malaysia at concessionary rates? A: I was in Iran recently and succeeded in obtaining one year credit payment (deferred payment), for oil purchased from them. I think we will obtain the same from Malaysia as well. Q: Do you think the 'Third Player' is required to ease the financial burden on the Treasury by the loss-making CPC? A: If the Treasury wishes, they could transfer their 'one-third' share back to the CPC. We are ready to take back this share held by the Treasury. Q: Is there a possibility of re-taking the shares now owned by the IOC to CPC? A: No. That is not possible. 90 per cent of the IOC shares are owned by the Indian government. Q: What is the position of oil and gas exploration potential in the country now? A: We would be doing some tests in December, and depending on the results we hope to call for tenders in April. We may have a joint venture with India in this. Q: Have you experienced any problems in the implementation of your work-plans with the CPC Chairman Jaliya Medagama as reported in the media? A: The CPC has only a one-third share. The other one-third shares are owned by the IOC and the Treasury. The CPC Chairman obviously has to protect the CPC's interest. The trade unions and my ministry are of the view that we should own the other one-third as well. The problem is that the people do not understand the real structure and certain misunderstandings arise as a result. Q:As the Genral Secretary of the party how do you view the progress of the UPFA within the last six months? A: We are facing many unexpected and uncontrollable challenges due to the world oil price hike. When we assumed office a barrel of oil was around US$ 33. Now it is more than US$ 53, an increase of 60 per cent within six months. It may go up further. When the purchase price of oil increases, the demand for Dollars increases, resulting in a depreciation of our rupee currency. Then inflation rises. The government has taken certain measures such as importing rice and wavering the VAT on certain essential items, to bring down the inflation.This is the greatest challenge to the UPFA government. To ease the problem, we would increase the salaries at the forthcoming budget. Q: Do you intend giving a subsidy to the public transport sector? A: Yes. That proposal is being considered and would be reflected in the budget proposals. Q: What made the government to sell petrol/diesel at a lower price outside Colombo? A: I was not consulted on this matter. However, I think the idea was to bring down the consumption of oil in the city limits, and this has been achieved, as the sales have dropped in the city after taking this measure. Q: What are your comments on resuming the stalled peace-process? A: I think it is not correct for me to comment on this. The Peace Secretariat has to make the comments on it. |
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| Produced by Lake House |
Power and Energy Minister
Susil Premajayantha in an interview with
Sunday Observer Staff Reporter Rohan Mathes , expresses his concern about
the current energy crisis and other related issues. Excerpts of the
interview.
