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Explosive CPC plan: 107 filling stations for Bharat Petroleum
By Chris Kamalendran and Frances Bulathsinghala
The controversial cabinet memorandum which sparked a fuel crisis and panic-buying in the city on Monday makes provision for a 84 million dollar deal with India's Bharat Petroleum which will gain control of some 107 filling stations.

The memorandum was to be presented at a special cabinet meeting on Monday but the meeting was put off under pressure by JVP trade unions to cripple fuel supplies if the cabinet went ahead with the sale of the filling stations to Bharat Petroleum.

While Finance Minister Sarath Amunugama and Power and Energy Minister Susil Premajayantha at a crisis meeting with JVP leaders on Monday agreed to review the memorandum for the sale of more CPC stations, President Chandrika Kumaratunga on Thursday vowed she would go ahead with the restructuring.

CPC joint trade union leader Lakshman Ananda has meanwhile accused Minister Premajayantha of playing a double game. He charged that Mr. Premajayantha had also signed the controversial cabinet memorandum though he had assured the JVP that he was opposed to further privatisation of the CPC.

The JVP union leader vowed further trade union action if the government went ahead with the sale of more CPC shares and stations. Mr. Premajayatha told The Sunday Times he was talking to the unions regarding the review of the CPC deal but he took a tough stand on matters relating to the CEB.

Rejecting union allegations about privatisation of the CEB, the minister challenged them to identify any buyer. CEB trade union leader Ananda Nimalarathne in response said the government was paving the way for the CEB to be sold later. He said that after nine separate companies were set up, the way would be cleared for the World Bank and other Western interests to work out their agendas.

Minister Premajayantha said the CEB and CPC were running at a huge loss and the unions must give credible alternatives to put these key institutions on a solid footing.

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