Nuclear power to go private

Nuclear power to go private
ENS Economic Bureau

New Delhi, March 8: With the Power Finance Corporation (PFC) winning the mandate to find a partner for the Kaiga Atomic Power Project, the stage is all set for allowing private sector units to produce nuclear power in the country. Before helping the Nuclear Power Corporation of India (NPCIL) to find a joint venture partner for the Kaiga plant in Karnataka, Power Finance Corporation will have to suggest suitable modifications to the Atomic Energy Act that will allow private sector participation in this area.

PFC, in consortium with Fieldstone Capital Services and RR Financial, won this bid against competitors that include Price Waterhouse Coopers, McKinsey, JM Morgan Stanley and ICICI.

The private partner will be allowed to have upto 49 per cent of the joint venture's equity, while the balance will be held by the government-owned NPCIL.