NTPC, NPCIL sign MoU for joint venture N-power plants
14 Feb 2009
Nuclear power monopoly Nuclear Power Corporation of India Ltd (NPCIL) and the country's largest power utility National Thermal Power Corporation (NTPC) has signed an memorandum of understanding (MoU) to incorporate a joint venture for setting up nuclear power plants.
S K Jain, chairman and managing director of NPCIL and his NTPC counterpart R S Sharma signed the agreement in the presence of union minister of state for commerce and power Jairam Ramesh and Atomic Energy Commission chairman Anil Kakodkar.
As per the proposal, NPCIL will hold the majority 51 per cent equity in the venture while NTPC will hold the remaining 49 per cent equity. The JV will set up a 2000 MW nuclear power plant at a location to be finalised later.
This would be the first joint venture in nuclear power generation in the country. NPCIL is currently the sole agency generating nuclear power in the country with a capacity of about 4120 MW.
After successful conclusion of international agreements with US, France and Russia for cooperation and development of India 's civil nuclear programme, the DAE and NPCIL carried out discussions over NTPC's proposal. It was decided to give a go ahead to the JV considering the successful track record of NTPC in implementing and operating large power projects.
Earlier this month, NPCIL, had signed another MoU with French energy major Areva for supply of two Evolutionary Pressurized Reactors of 1,650 MW capacity each, for the nuclear power plant being set up by NPCIL at Jaiapur in Maharashtra . The company has also inked a pact to import 2,000 tonnes of uranium from Russia.
NTPC will invest around Rs1,000 crore for setting up nuclear power plants of at least 2, 000 MW capacity, according to Sharma.
The proposed company will employ the indigenous technology of NPCIL which uses natural uranium and heavy water.
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