The Hindu Business Line : N-deal vote sets ball rolling on uranium import options

New Delhi, Oct. 2 The Indo-US civilian nuclear deal clearing its final hurdle on Wednesday could set the ball rolling on the possibility of uranium imports from Nuclear Suppliers Group nations for the fuel-starved domestic nuclear power programme.

The groundwork for reactor imports and setting up of greenfield Light Water Reactor capacities involving global suppliers is, however, expected to take longer — anything from two to three years even in the best-case scenario.

As an immediate impact of the developments on the nuclear front, state-run Nuclear Power Corporation of India Ltd (NPCIL), which is currently starving for fuel and forced to run its 17 power stations at half their total capacity of 4,120 MWe, could well look at fuel imports to run its existing capacity at higher efficiency, a Government official involved in the exercise said.

In the case of reactor imports, the collaborative efforts could be faster in the case of Russia, since State-owned Russian nuclear firm Atomstroyexport is already assisting Nuclear Power Corporation of India Ltd (NPCIL) in setting up two units at Koodankulam in Tamil Nadu as part of a deal signed in 1988.

Additional reactors with Russian assistance at the Koodankulam site, with four Light Water Reactor units of 1,000 MWe each on the anvil, are expected to be the first of the block following the opening up of the Indian nuclear market.

NPCIL plans to commence work on setting up four new reactors at Koodankulam with Russian assistance this December, with the draft technical and economic proposals expected to be firmed up latest by March-April 2009. The utility has already carried out some of the groundwork, including setting up support infrastructure and the commencement of digging of the foundation pit, as well as getting necessary permissions from the Ministry of Environment and Forests for the four new reactors at Koodankulam, an official said.

Besides, a fast-track approach with the French utilities such as Areva SA (A joint venture between Areva and Siemens) could also be on the horizon, especially for the proposed Jaitapur project in Maharashtra, which was earmarked earlier for joint execution by the two sides.

This could, however, take two or more years in terms of actual reactor imports, according to officials. “What has been signed with France is only a framework agreement for nuclear cooperation (between the two countries). There are more steps to be taken to operationalise the pact, before utilities can sign agreements with French utilities for importing reactors,” an official said. For US firms, including GE-Hitachi combine and Toshiba-owned Westinghouse, entry into the Indian market could take longer.

The Indo-US nuclear deal will now head to the White House for Bush signing it into a law. With Wednesday’s Senate vote, the deal is now ready to be inked by the US Secretary of State, Ms Condoleezza Rice, when she arrives in New Delhi on her rescheduled trip on Saturday, with the External Affairs Minister, Mr Pranab Mukherjee.

The US-India Business Council, a prominent industry lobby comprising 300 of the top US companies committed to a long-term partnership with India, said: “A massive scope for commercial opportunity between US and Indian companies will also be the result, valued at more than $150 billion over the next 30 years, spurring a revival of the nuclear power industries of both countries that will create as many as a quarter million high-tech US jobs for generations to come.”

Related Stories:
Spinoffs from nuclear deal: Who could benefit

More Stories on : Power | Minerals | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page