NPCIL to begin business talks with major US nuclear suppliers

The Department of Atomic Energy (DAE) and Nuclear Power Corporation of India Limited (NPCIL) will begin negotiations with American nuclear energy majors following clearance of the nuclear liability bill, a top NPCIL official said today.

"We are all set to begin talks with American companies, Westinghouse Electric Company and General Electric, and discuss how the business can happen and conclude the talks as early as possible," chairman and managing director of NPCIL SK Jain told PTI.

"Since the 'arrangements and procedures' are in place, we have to find ways and means to implement it and move forward in having collaboration with American companies in building civilian nuclear power plants during the next two decades," Jain said.

The representatives of American nuclear industries also confirmed that they have been invited by DAE and NPCIL to discuss business plans inspite of the new law.

On August 30, Parliament had adopted nuclear liability bill with the government insisting that the compensation package for victims matches that of the US and it was still open to accommodate some suggestions.

Reacting to the legislation the US yesterday said there are "couple of issues" raised by American companies about the new law and it would be "wise" for India to ensure consistency between its regulations and that of other countries.

After the passing of the legislation both DAE and Atomic Energy Regulatory Board have begun framing rules for the nuclear liability law, DAE officials said.

Regarding power plants, coming up in collaboration with Russia at Kudankulam Atomic Power Project (KAPP) in Tamil Nadu, Jain said first two units of 1,000mw each are nearing completion and fuel loading for Unit 1 is expected to take place in December and will be commissioned in January next.

The KAPP Unit 2 will be commissioned around May or June next year, he added.

About progress of KAPP Units 3 and 4, Jain said technical and commercial negotiations with Russians have been finalised and details have been worked out on indigenisation in these two units, which will be upto 60-65% unlike the Units 1 and 2 where 100% equipment supply was from Russia.

When asked about negotiations on price, NPCIL CMD said, "few rounds of talks have taken place and few more rounds will be held to finalise it."

Levelling of ground for KAPP Units 3, 4, 5 and 6 have been completed, and tenders have been floated for excavation work for power plant Units 3 and 4, Jain said.

"We are expecting first pour of concrete for Units 3 and 4 by June next year. Construction of peripheral infrastructure are being carried out on a war footing." The fuel supply for KAPP has also been received which will last for five years from the day of commencement of plant operation, Jain said.

On imported uranium supply for Indian plants which are under international safeguards, he said besides France, Russia and Kazakhstan (who are already supplying uranium), NPCIL is also negotiating with few more potential suppliers.

"We are also in process of keeping the units of Kakrapar Atomic Power Station (KAPS) in Gujarat under India specific IAEA safeguards by end of this year (instead of 2012 as per separation plan of the Indo-US deal) so that two more Indian plants can start using imported fuel and run the plants at 100% rated capacity."

"We have already intimated to IAEA (International Atomic Energy Agency) in this regard and surveillance instrumentation and other required arrangements for placing KAPS under IAEA safeguards are going on, and will be completed by October," Jain said.

Jain said the imported fuel helps NPCIL in augmenting its power producing capacity and five units of Rajasthan Atomic Power Station (RAPS) are running at full rated capacity and increased power production by more than 25% in 2009.

On the status of indigenous fuel supply, Jain said Uranium Corporation of India has increased its production capacity to 60-70% compared to last year. Hence, the plants outside the international safeguards are running at 70-75% capacity.

Recently, the Narora Atomic Power Station (which will be placed under IAEA safeguards in 2014) received indigenous fuel and is operating at a higher rated capacity.

The construction of Kaiga Atomic Power Station Unit 4 has been completed and is waiting for Indian fuel and "We expect the commissioning of the plant to take place in November this year," Jain said.

On new power plants, Jain said four indigenously developed 700mw pressurised heavy water reactors will come up in the next few years with two units each at Kakrapar (Gujarat) and Rawatbhatta (Rajasthan).

Excavation work at Kakrapar is over and first pour of concrete will take place in next 2-3 weeks.

In Rajasthan, the work will commence in May or June next year but procurement and fabrication of all critical equipment and components have commenced at various Indian manufacturing industries, Jain added.