Major nuclear suppliers attracted to India
22 Jan 2009
India's nuclear industry is attracting the attention of global bidders. France had the first movers' advantage and has bagged a huge contract the multi-billion dollar industry. Not to be left behind, high-level delegations from Britain and Canada have also offered to supply uranium to India.
The visits by the British and Canadian delegations come close on the heels of a similar trip by a team of the US nuclear industry here over a week ago.
A 20-member British delegation, headed by secretary of state for business and enterprise Lord Peter Mandelson arrived yesterday.
The Indo-US civilian nuclear deal had allowed the country to enter the nuclear suppliers' group (NSG) for civilian use in September 2008. The deal was passed after much debate and deliberation by the Bush administration, even though India has not signed the Non Proliferation Treaty.
The Indian nuclear market
Nuclear business opportunities of as much as Rs80,000 crore ($16 billion) are expected in the country by 2020.
Nuclear power may generate as much as 10 per cent of India's electricity by 2030, India, which had a 34-year global ban on nuclear trade lifted in September, uses atomic energy for less than 3 per cent of its 147,402.81 megawatt electricity output.
According to the 11th Five-Year Plan targets, India aims to build 5,600 MW (8 X 700 MW) pressurised heavy water reactors, 1,500 MW (3X500 Mw) fast breeder reactors, 300 MW (1X300 MW) advanced heavy water (thorium) reactors and 10,000 MW (10 X1000 MW) light water reactors (LWRs). The target is to increase the share of nuclear energy in the energy basket from the current 4.1 per cent to 9 per cent in the next 25 years.
The opportunity would be huge for the supplier industry, as India needs 1,600 tonnes of uranium every year. Four likely vendors - GE Hitachi and Toshiba Westighouse of the US, Areva of France and Rostam of Russia - will provide LWRs of 1,000 MW.
Major deals already underway
Larsen & Toubro has signed seperate deals with the US nuclear equipment maker Westinghouse and Canada's AECL to set up joint venture to build nuclear reactors in India.
While L&T T will undertake the fabrication and construction of nuclear plants of up to 1,000 mega Watt capacity in India as per design provided by Westinghouse, in the second deal, it make AECL's Advanced CANDU Reactor ACR 1000. The ACR 1000 is AECL's third-generation reactor design that utilises the proven concepts of the pressurised heavy water reactor.
L&T and AECL want to develop a competitive cost model for the ACR 1000. Upon the completion of the model, L&T and AECL agree to begin discussions to develop nuclear power plants in India and utilise the capacity in global markets.
French energy company Areva will sign an accord with the state-owned Nuclear Power Corporation of India Ltd next month for setting up two reactors in Maharashtra. This follows the Intergovernmental Agreement between India and France on civil nuclear co-operation.