Global nuclear majors eye India; sector may be opened up now

New Delhi|Mumbai, September 6: At least four of the world’s largest nuclear power station makers — France’s Areva, General Electric of the United States, Toshiba’s Westinghouse Electric and Russia’s atomic energy agency Rosatom — will soon be keen to supply reactors to India as the 45-member Nuclear Suppliers Group (NSG) approved the Indo-US civilian nuclear deal, opening up commerce worth billions of dollars.

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.

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