Planning Commission deputy chairman Montek Singh Ahluwalia told The Indian Express that entry of private sector requires amendments to the Atomic Energy Act of 1962. “The original logic was to change the law once the safeguarding system is in place after the deal is cleared,” he said, adding that India would wait for US president George Bush to get the deal approved by Congress before it considers changes in the Act.

The deal changes the status quo primarily on three counts: it allows the flow of nuclear fuel, helping the country’s nuclear programme grow faster. Two, it will open up trade for global players to export reactors to India. Lastly, though new, it will open up opportunities for export by Indian companies.

Following India’s nuclear isolation since 1998, capacity utilisation of the country’s 4,120-MW power plants had come down steadily from 90 per cent in 2001-02 to 54 per cent in 2007-08. A power ministry official said, “About 6-8 reactors of 1,000 MW each could be installed during the Twelfth Plan (2013-18).” The new plants could work at a load factor of up to 80 per cent given the assurance of fuel supplies. “This will not only diversify the country’s power generation portfolio, but also reduce pressure on railway transportation of coal for the thermal power plants,” he said.

Some of the Indian companies that have already announced their intention or are likely to emerge as big players include L&T, Reliance Power, state-owned NTPC, Jindal Power and the Tata Group.

“We’re already involved. We’re the only manufacturers of reactors in India now. I’m pleased with the development as a poor country like India needs energy... and crude oil is quoting at $120-130. However, some modifications in the Electricity Act are needed for the entry of the private sector,” said Larsen & Toubro chairman AM Naik.

In fact, global energy majors have been visiting India ever since the nuclear deal was proposed a year ago. Their mission: to explore the scenario for big projects and contracts before the deal goes through.

“We’ve been meeting many global energy companies in the field. We will definitely move forward when the deal is fully finalised and sealed,” Naik said.

Videocon group chief Venugopal Dhoot said it’s not only nuclear power plants, but also high-tech areas that would benefit. “About 40,000 MW of power will be available to the Indian industry, agriculture sector will be able to use a lot of this energy. Similarly, pharma and semi-conductor manufacturing companies will also gain a great deal,” Dhoot said.

The Jindals had recently gone on record, expressing their intention to get into the sector. “We want to foray into nuclear power. We are talking to global majors,” JSW Steel vice-chairman Sajjan Jindal had stated. The group is planning to either enter into a joint venture or a technology tie-up with a global major.

The Tatas are already involved in the production of some defence equipment. “I won’t be surprised if Tata Power, a leading power producer, firms up plans in the nuclear generation,” said a corporate source who did not wish to be identified.

Besides, the opening up of the sector will also boost the growth of a host of ancillary industries. “As the government moves ahead with the nuclear deal, we expect very significant opportunities in the sector. Punj Lloyd group is well positioned to leverage this opportunity as Simon Carves UK (its client) has over 3.5 million man-hours of experience in nuclear facilities in the UK and Punj Lloyd has the construction capabilities in the sector,” Punj Lloyd said.

According to a KPMG study on ‘India Energy Outlook’, private participation in nuclear energy is likely to be allowed as and when the Indo-US Nuclear deal goes through. “India’s power and upstream energy sectors such as coal, oil & gas need investments to the tune of $120-150 billion over the next five years,” it had said.

Anticipating the green signal for the deal, ONGC had recently decided to go overseas to hunt for uranium. It recently proposed to form a joint venture company with Uranium Corporation of India Ltd (UCIL). Besides exploration and mining of uranium, ONGC and UCIL will take up milling/ processing of uranium ore besides storage, packaging and transportation of yellowcake and products trading.

Though entry of private sector will take time, plans for tie-ups are set to intensify in corporate boardrooms

Indian powerhouses

Larsen & Toubro: The only manufacturers of reactors in India at present, the company has been meeting global energy companies in the field

Jindal Power: Wants to foray into nuclear power and is in talks with global majors. The group plans to either enter into a joint venture or a technology tie-up with a global major

NPCL: The government-owned corporation currently operates 14 nuclear power units at six locations and is implementing construction of eight nuclear power plants

Other Indian cos that intend to or are likely to emerge as big players include Reliance Power, state-owned NTPC, and the Tata Group

Punj Lloyd: With a client like Simon Carves UK which has experience in nuclear facilities, Punj Lloyd expects opportunities in ancillary industries

World wants a piece

With commerce worth billions of dollars expected to be opened up, four of the world’s biggest nuclear power station makers will be keen to supply reactors to India. These are France’s Areva, The US’s General Electric, Toshiba’s Westinghouse Electric and Russia’s atomic energy agency Rosatom. Two large Russian nuclear power sector companies are Atomstroiexport and AtomEnergoProm

Powering up

Following India’s nuclear isolation since 1998, capacity utilisation of the country’s 4,120-MW power plants had reduced from 90 per cent in 2001-02 to 54 per cent in 2007-08. With the NSG approving the Indo-US civil nuclear deal, India could get off the ground with about 6-8 reactors with a capacity of 1,000 MW each during the Twelfth Plan period (2013-18). This could diversify the country’s power generation portfolio.

Still to go

Planning Commission deputy chairman Montek Singh Ahluwalia said that entry of private sector requires amendments to the Atomic Energy Act of 1962. The Indian government would wait for US president George Bush to first get the deal approved by Congress before it considers changes in the Act, he said.

What changes

• Allows the flow of nuclear fuel, helping the country’s nuclear programme grow faster.

• Opens up trade for global players to export reactors to India

• Would give Indian companies the opportunity for export