Nuke deal to open investments worth $40 bn
Press Trust of India
Sunday, August 12, 2007 (Mumbai):
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The Indo-US civil nuclear deal has opened up the possibility of investments worth $40 billion over the next 15 years to step up nuclear power generation, with leading firms like White Westinghouse, General Electric, Rosatom and Siemens unveiling plans to do business with the country.
After nearly 33 years of nuclear isolation, India's nuclear power generation capacity is expected to rise to 40,000 MW by 2025 with access to several 1,000 MW-plus advanced light water reactors and a committed fuel supply, and nuclear commerce is expected to go up to $40 billion, Nuclear Power Corporation of India Chairman S K Jain said.
"Once all the necessary steps are taken by India and the US and after getting a signal from the Nuclear Suppliers Group, India will get to do global nuclear commerce which will not only enhance the indigenous programme with imported fuel but also help accelerate nuclear power with imported power plants as an additional," Jain said.
New players
As a spin-off of the Indo-US deal, Indian companies participating in the nuclear power programme and new players in the field like the Tatas, Reliance Energy, Birlas and Vedanta will benefit immensely as it is estimated that 50 per cent of the total investments would benefit Indian industry, he said.
For new entrants like Tatas and Reliance, it may possibly take four to five years for them to participate fully once necessary amendments are made to the Atomic Energy Act, Jain said.
Imported plants using light water reactors are likely to come up at Jaitapur in Maharashtra, Kudankulam in Tamil Nadu and other coastal sites that are being identified in states like Gujarat, Orissa and Andhra Pradesh, he said.
Only the Nuclear Power Corporation will be authorised to construct plants using imported reactors till other state-owned power companies like the National Thermal Power Corporation get clearance from the Department of Atomic Energy in this regard, he said.
Beneficial to Indian industries
The deal with the US will be beneficial to Indian industries and the NSG, including the US, as it is planned that India will buy at least 20 or 25 reactors, each worth around $2 billion, in the next 15 years. These reactors may need 800 tonne of uranium worth $2-3 billion while spare parts alone would be worth one billion dollar.
"In other words, there will be assured business for the next 60 years as the life span of each plant will be 40 years," Jain said.
He said there would be business orders for 100 reactors across the world in the next five to six years but the manufacturing capacity of NSG members is far short of the expected orders.
"The only choice for the nuclear community is to augment their manufacturing facilities. The NSG is also looking for various places where facilities can be augmented," Jain added.
"Indian industries which are participating in the country's nuclear power programme can make use of this opportunity to have tie-ups in technology transfer and upgrade technologies and thus make India a regional nuclear supply hub, he said.
Support to atomic programme
Indian industry will not only have enough orders to support the country's atomic programme but also offer components at competitive prices to become a global player, he pointed out.
Russia has drawn up a plan to build two reactors a year. China too is going ahead at the same rate and plans to generate 40,000 MW of nuclear power in 20 years. India is planning to create a similar capacity and the US Nuclear Regulatory Commission has already received applications for 30 reactors, he said.
Of the expected business worth $40 billion, 50 per cent could go to Indian industries as all the foreign firms cannot provide certain equipment, which will be made through Indian industries. "India's technical manpower and expertise is going to be another area of human resource which could be part of this large global business," he said.
Without any initial borrowings, the Nuclear Power Corporation is confident it can fund equity for up to 10,000 MW or 15,000 MW at the rate of two billion dollars for a 1,000 -MW reactor. "If our accruals increase, we can have more equity in the programme and by 2009-10 we can begin the new projects," he said.
The nuclear industry chief also said most vendors are experts in making fast deliveries -- White Westinghouse's gestation period for a plant is 36 months while it is 45 months for GE and 50 months for Areva. |
