India and France are at an advanced stage of negotiations for setting up of two nuclear power plants in Maharashtra through a joint venture.

Nuclear Power Corporation of India Limited (NPCIL) and French nuclear company Areva are preparing a contract under which two power plants of 1,650 MW each will be set up in Jaitapur in Maharashtra, diplomatic sources said on Friday.

Discussions are underway smoothly and the contract is expected to be finalised in around two months, they said. The contract is being prepared on the basis of an MoU signed between NPCIL and Areva last February.

The power plants will be built and operated by NPCIL with technology and engineering help from Areva. The crucial aspect of tariff is also being worked out, the sources said, adding that it will ensure that the economical part of the project is being taken care of.

On reprocessing, France has made it clear that the nuclear fuel could be reprocessed by Indian facilities, and if Indian facilities don’t have the expertise, then Paris could consider reprocessing.