The Hindu Business Line : Russia offers discount on new N-reactors, fuel for existing plants

Nuclear play
Russia is offering 30 per cent discount on the $2-billion price tag for each of its new nuclear reactors
Much of the equipment and components for the reactors are proposed to be manufactured in India

Anil Sasi

New Delhi, Dec. 9 Russia has offered a sweetener in the form of a 30 per cent discount on the $2-billion price tag for each of its new nuclear reactors under discussions for sale to India. Besides, the Russians are open to deputing its nuclear fuel firm, TVEL Corporation, to deliver uranium not just to the Russian-built stations, but for existing heavy-water units in the country as well, including the Tarapur station, according to Government sources.

India, on the other hand, has promised the Russians an increased role in the sector. Over and above the agreement signed for four additional reactors at Koodankulam, where two reactors are already under construction, talks have been initiated for building a seventh and eighth reactor units through Russian assistance at the same site. The Russians are also lobbying hard for earmarking at least one more new site, other than Koodankulam, for setting up Russian design reactors.

Even as the price of each reactor is $2 billion, the Russians have offered the discount based on plans to start serial production of reactors for the Indian nuclear industry. Much of the equipment and components are proposed to be manufactured in India, thereby bringing down costs. After factoring in the discount, the cost of construction for a mega watt (MW) for each new reactor comes to roughly Rs 7 crore (at current exchange rates).

In the case of first two ‘VVER-1000’ units that are currently under construction at Koodankulam, the total construction cost was estimated at $2.6 billion. At current exchange rates, it translates to around Rs 6.5 crore/ MW. The Russian Government had provided India with a long-term credit, which covers almost half of the cost of the first two units. NPCIL expects the first Koodankulam unit, when operational, to be able to sell power at less than Rs 2.50 a unit (kilowatt hour).

Pacts signed

Russia and India had, last Friday, signed an inter-governmental agreement for cooperation on the construction of four additional reactors at Koodankulam.

They also signed a protocol on fuel supplies, with TVEL agreeing to deliver fuel worth $700 million to India.

These deals include an assurance of uranium supplies for a number of existing Pressurised Heavy Water Reactors, including uranium dioxide pellets for the Tarapur station.