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CPC's $ 85 mn. Bharat deal on track again
Ceylon Petroleum Corporation trade union leaders will meet Power and Energy Minister Susil Premajayantha next week amidst speculation that the Government has negotiated a deal with India's Bharat Petroleum Corporation as the controversial third player in the privatisation process of the CPC.

Mr. Premajayantha would meet the trade union leaders in the Parliamentary complex on Tuesday, CPC Common Service Union Secretary Lakshman Ananda said.

No official confirmation was available last night to speculation among trade union circles that the Treasury had signed a US $ 85 million MoU with BPC after its Chairman S. Behuria visited Sri Lanka recently.

The speculation was that the MOU put the onus on the Sri Lankan government to win the support of the trade unions in the exercise. The JVP union has publicly opposed the move.

If implemented, this would mean the BPC would in return get nearly 100 CPC-owned sheds in addition to one third of shares of Ceylon Petroleum Storage Ltd (CPSTL), the company that owns the infrastructure facilities of the industry. The other players are CEYPETCO and Lanka India Oil Corporation (LIOC).

Indian High Commission officials in Colombo remained tight-lipped last night about the second Indian player in the local petroleum market. Meantime, Minister Premajayantha has put up a cabinet paper for a US$ 150 million Indian credit line nominating Oil and Natural Gas Corporation of India (ONGC) -- recommended by the Indian government -- to supply petroleum products to the CPC

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