The Hindu Business Line : IOC plans 26 to 49% stake in JV with NPCIL

NEW DELHI: Indian Oil Corp Ltd (IOC), the nation’s largest oil firm, on Monday said it will take 26 to 49 per cent stake in the Rs 10,000-crore nuclear power plant it will set up in collaboration with the Nuclear Power Corp of India Ltd (NPCIL).

“We have signed a memorandum of understanding (MoU) for setting up at least one 1,000 MW nuclear power plant with NPCIL,” Mr B M Bansal, Director (Business Development), IOC said here.

NPCIL will be the operator and take at least 51 per cent stake while IOC is contemplating taking either 49 per cent or 26 per cent interest, he said.

The two firms, he said, will in next six months decide on the site, fuel and the project structure.

“Nuclear power gives us a good opportunity to become an integrated energy firm,” he said. “The nuclear power plant will cost Rs 8 to 10 crore per megawatt but the good thing is that we get 15.5 per cent return on investment and cost of electricity genera tion is low - about Rs 3 - 4 per unit.

“We want to gain experience and may be at a future date we may set up nuclear plants on our own (when the sector is opened up),” Mr Bansal said.

IOC may invest Rs 1,000 to Rs 1,500 crore as equity in the project with NPCIL, he said.

The techno-commercial modalities, including source of nuclear fuel and site would be decided over the next six months. - PTI

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