News
Rs. 50 mn. wasted buying equipment CEB already owns
Purchases suspected to enable overseas junkets
By Ifham Nizam
The Norochcholai Coal Power Plant has spent Rs. 50 million to purchase an unnecessary test apparatus when the same equipment is available in several specialized branches of the CEB, a senior Electrical Engineer said.
He said that the equipment known as the primary injection test set (or primary current injection kit) is used for testing different components in electricity supply systems, including circuit breakers, transformers and protective relays.
The Generation Division of the CEB under which the Norochcholai Coal Plant functions already has two dedicated asset management branches to service testing and commissioning requirements of its power plants.
“Both these asset management branches have fully functional primary injection test sets purchased from a highly reputed Austrian manufacturer,” he added.
The Sunday Island learns these branches also have spent millions on procuring many other test equipment and providing specialized overseas training to their engineers. The purpose of having dedicated asset management branches is to avoid duplication of very expensive equipment and to retain engineers with specialized training in a central place to serve the needs of all power stations.
Similar branches exist in the Transmission and Distribution divisions of the CEB as well. These branches also have purchased their own primary injection test sets.
Several engineers serving at the Norochcholai power plant told The Island on condition of anonymity that it was a total waste for the plant to spend Rs. 50 million to purchase the same equipment already owned by the two asset management branches of the Generation Division.
They pointed out that the Asset Management branch in charge of thermal power plants has carried out all testing work associated with major overhauls of the Norochcholai Coal Power Plant to date. They question why the Norochcholai purchased this expensive item which was not only not required but also given the fact that the same equipment supplied by its Italian manufacturer to two of the distribution divisions of the CEB had failed and become unusable.
It is understood that the supply contract included overseas training and factory inspection in Italy for the engineers at Norochcholai.
Some CEB engineers expressed the grave suspicion that the equipment in question may have been purchased to justify the overseas visits by the engineers concerned.
They claim such training is also unnecessary since there are already trained engineers working in the specialized branches of the CEB, and the CEB has spent vast sums in training them both locally and at manufacturers’ facilities abroad.
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Fuel crunch looms
Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies
by Saman Indrajith and Norman Palihawadane
The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).
Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.
The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.
The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.
“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.
Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.
The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.
The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.
“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.
He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,
along with President Anura Kumara Dissanayake.
Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.
He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.
The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.
The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.
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