Indian Oil to form JV with Nuclear Power Corporation

India's largest oil firm IOC is likely to enter into a joint venture (JV) with Nuclear Power Corp of India (NPCIL) according to media reports. The move will help the country's largest oil marketing company to enter into nuclear power the reports say.

According to sources the company intends to ink memorandum of understanding (MoU) with NPCIL later this month to explore options for joint ventures for setting up at least one nuclear power plant.

Sources say the signing of the MoU will be followed by a confidentiality arrangement between the companies. Under the agreement NPCIL is to share details of the projects it is planning, sources say.

According to the sources IOC is likely to take 26 per cent to 49 per cent stake in NPCIL's upcoming Rs280.50 billion 3300 MW Jaitapur plant in Maharashtra, Rs180 billion 2,00 MW Kudankulam unit in Tamil Nadu or a Rs120 billion 1,400 MW plant likely to be located at Kakrapar in Gujarat or Rawatbhata in Rajasthan.

Meanwhile the first foreign funds to flow into India's nuclear sector are expected to come from France. Bharat Heavy Electricals (Bhel) and NPCIL have joined hands with Alstom of France in a three-way joint venture which will manufacture equipment for uranium-fed power plants.

Bhel and NPCIL, which are 50:50 partners in a joint venture, may divest up to 30 per cent equity to accommodate Alstom in the venture. However Bhel chairman and managing director K Ravi Kumar declined to comment on the issue and said that Bhel has identified its partner and the talks are in an advanced stage and certain minor issues remained that would be ironed out soon.