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BL Research Bureau

Punj Lloyd’s tie-up with Thorium Power – a US-based nuclear fuel technology provider and consultant would add the former to the list of domestic companies that could benefit from the country’s nuclear power initiatives.

The agreement seeks to deploy Thorium Power’s nuclear fuel designs in India, Southeast Asia and other territories.

While Nuclear Power Corporation continues to be the only nuclear power generator in the country, Larsen & Toubro and BHEL are the key domestic players who have so far evinced interest in design and supply of nuclear power reactors and power equipments. Even as both the players currently possess capabilities in this field, they are also scouting for possible tie ups with international players. The reason behind such tie ups could be that while Indian players are more familiar with manufacture of key power equipment – boiler, turbine and generator, their experience with nuclear reactors is limited.

International players tend to score over in this area. Players such as Areva (France), Atomstroy (Russia), Westinghouse Electric (US) and GE-Hitachi (US) are some of the key contenders for technology transfer of nuclear reactors.

Punj Lloyd’s current agreement with Thorium Power, however, appears more of a long-term initiative, at least in India, for the following reasons: For one, Thorium Power is engaged in technology development using thorium fuel for reactors; the conventional fuel used by most others is uranium. In India’s nuclear development cycle, while thorium is likely to play a very large role over the long-term, given its availability, thorium utilisation comes only in the third stage of India’s three-stage domestic nuclear programme. Natural uranium fuelled heavy water reactors, and fast breed reactors using plutonium-based fuel (a by product of the first stage) occupy the first two stages of the development cycle. While the first stage reactors have gone commercial and the second stage has also been developed, only pilot models of thorium-based reactors have been developed.

However, thorium as a fuel could well be an economic fuel source in India as the country holds the second largest reserve of thorium in the world. Further, thorium could well address the proliferation issue as it is said to not only generate lower waste but makes its reactors unsuitable for a weapons programme.

Even as the Punj-Thorium Power could make a gradual entry into the Indian market, they could meanwhile make strides in international markets. Thorium Power has been successful in markets such as the UAE. Added to this, Punj’s subsidiary, Singapore-based Sembawang can provide valuable backward integration through its engineer, procure construct experience in the nuclear power space.

More Stories on : Alliances & Joint Ventures | Power | Engineering

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