Russian nuclear supplies favoured due to higher US, European costs

The government seems to be inclined towards procuring nuclear power equipment for the country's nuclear power projects from Russia, due to US and European companies quoting higher prices.

Reuters quoted Rakesh Nath, chairperson, Central Electricity Authority as saying, "European and American costs are higher than the indigenous manufacturers."

"Russian prices seem to be ok," he said when asked about prices quoted by foreign and Indian firms.

India and Russia signed a cooperation agreement on peaceful uses of nuclear energy during prime minister Manmohan Singh's visit to Moscow last week. The deal is already said to offer more favourable terms than the 123 pact signed with the US.

Under the terms of the deal signed on Monday, Russia would continue supplying nuclear fuel and technology to India even if the latter carries out a nuclear test. Also, the Russian pact also allows India to reprocess and enrich spent fuel, unlike the 123 agreement.

Nath's comments come even as a commercial delegation of US companies such as GE Hitachi, Westinghouse, Babcock & Wilxcox is on a visit to India to explore opportunities in India's nuclear energy sector.