NPCIL signs pact with Areva for two nuclear reactors
04 Feb 2009
Areva SA, the world's biggest maker of atomic reactors, has signed a preliminary sales agreement with the state-run Nuclear Power Corporation of India that will help build the country's first large-capacity plant using overseas equipment.
The agreement was signed by S K Jain, chairman and managing director of Nuclear Power Corporation of India and Anne Lauvergeon, CEO of Areva, in the presence of minister of state in the Prime Minister's Office Prithviraj Chavan, French minister of state for foreign trade Anne-Marie Idrac and chairman of Atomic Energy Commission and secretary to the Department of Atomic Energy Dr Anil Kakodkar.
Under the MoU, Areva will work on the setting up of two reactors at NPCIL's Jaitapur site in Maharashtra, ensure life time fuel supply for these units and possibly extend technical co-operation with NPCIL.
Areva will initially supply two reactors of 1650 MW each and NPCL will get uranium supplies to run the plants for 60 years, said Anne Lauvergeon, Areva's chief executive officer. Areva said it may provide India with up to six EPRs (evolutionary power reactors).
India is targeting 60000 MW of nuclear power generation by 2030. NPCL has 4120 MW capacity from its 17 existing reactors, and is building another five units with a total installed capacity of 2660 MW.
The cost of one EPR has been estimated at between $5.2 and $7.8 billion, but final costs are subject to negotiation.
The signing of the MoU comes in wake of the bilateral agreement signed between India and France on 30 September 2008 in which the two countries agreed to work together for the development of peaceful use of nuclear energy.
India, one of the fastest developing economies in the world, expects its installed nuclear power capacity to grow to 63 GW by 2030. NPCIL already has 17 units in operation with a total installed capacity of 4,120 MW and currently builds 5 units with a total installed capacity of 2,660 MW.
Areva already has a strong presence in India through its Areva T&D India subsidiary, which is the biggest local entity on the electricity transportation and distribution market. It also develops its offer in the generation of electricity from biomass, with Areva Bioenergy. The group employs more than 4,200 people in India and has eight industrial sites.
Lauvergeon said Areva will meet the fuel requirements, which she pegged at about 60 years, through its uranium mines located in various countries, including Australia, Kazakhstan and Niger.
All the reactors will be located in a nuclear park Areva has been tasked to develop at Jaitapur.
