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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2675

Overall performance taken together, CPC and CPSTL makes no loss

By Quintus Perera -Asian Tribune

Colombo, 23 January, (Asiantribune.com): It transpired that the Ceylon Petroleum Corporation (CPC) when all operations taken together is not making a loss and in answer to the queries made by the media, Asantha De Mel, Chairman and Managing Director, CPC and CPSTL conceded that covering the losses incurred by the present subsiding Diesel and Kerosene at the end of the year 2007 would reach a break-even point.

He said that earlier their profits were eaten up by the losses incurred by way of subsidies, but now the price increases of these oil products would half the losses. He also conceded that they were charging Rs 10 more on a litre of petrol which also contributes to reduce the loss. One journalist suggested that as to whether it would be ethical to (rob) tax one set of consumers to mitigate the price hikes of another set of consumers.

These transpired at the Press Briefing to announce that Indian Oil Corporation Ltd (IOC) has been chosen as the consultant for the implementation of SAP-ERP Software for CPC, CPSTL and Lanka OIC (LIOC) held at Hotel Ceylon Continental last week.

CPSTL has decided to implement Systems Applications Products for data processing (SAP) as the Enterprise Resource Planning (ERP) system in its organization. The implementation will also cover its business partners and shareholding companies Ceylon Petroleum Corporation and Lanka IOC PLC.

De Mel was unable to quantify in monetary terms the benefits that would accrue in installing these software, but went on to analyze the cost of petroleum in other countries such as India, England and said that having these software installed would greatly contribute to efficiency and also tremendously progress productivity. He said that their turnover alone constitutes to a massive Rs 240 billion but unable to reach these figures instantaneously thus unable to arrive at decisions fast.

He said that with this SAP Software Solutions Programme in place the entire activities of their organization would be available at their finger tips as accounting, storage, sales, purchases and all other activities would be computerized and could be obtained on-line. De Mel said that this was something wanting for the petroleum industry in Sri Lanka.

He said that K Ramakrishan, Managing Director, Lanka IOC and Director, CPSTL has taken great interest in initiating the programme by even bringing down personnel from Indian IOC who have vast knowledge in the SAP-ERP Programme.

He said that they were going backwards in making full use of information technology. He said that he has been the Chairman over a year and obtaining figures and statistics reached late and all the information available on-line would help adjust matters instantaneously and enable them to same lot of money for the country.

S Ramasamy, General Manager, Information Systems, Indian Oil Company said that Indianoil, the largest commercial enterprise in India was awarded the work due to their expertise as the largest implementer of SAP in Southeast Asia connecting 681 locations and 8,000 concurrent users to a common IT platform for online, concurrent business transactions.

He said that they were the fastest implementers at the largest number of locations. Implementation of SAP in Indian Oil covers 4 divisions, 7 refineries, pipelines and numerous marketing terminals. Depots and Administrative Offices spread across India. Indianoil has also extended SAP to its group of companies too.

The Indianoil SAP team will commence ERP implementation on 16th January, and it would take one year to complete the project. The project will be done in two phases and the implementation will take place in the second stage. This will also include testing and user acceptance of the system, data migration, user training, Go Live and hand holding.

The project is expected to revolutionize the oil sector in Sri Lanka leading to benefits in the form of cost savings, better financial and receivables management, inventory controls, optimization of resources and decisions based on accurate data.

- Asian Tribune -

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