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India, with its entry into Nuclear Suppliers Group (NSG) after a three-decade ban is seen as one of the potential market for nuclear power. The nuclear power programme offers an opportunity worth $60 billion for the global nuclear industry, as India plans to add about 60,000 Mw capacity by 2032.

Areva, the French nuclear reactor maker, is widening its business plan for India with major investments in its strategic joint ventures with Bharat Forge, Tata Group, Bharat Heavy Electricals (BHEL) and Nuclear Power Corporation of India (NPCIL).

Areva, which is planning a large scale nuclear reactor forgings facility in India with Bharat Forge, will invest over Rs 2,000 crore in two shell companies. The JV will start production by 2012 and the partners are expecting to supply 8-10 forgings in the first year of operations.

Areva has finalised the terms of a framework agreement with the Indian engineering company TCE Consulting Engineers (TCE), a subsidiary of Tata Sons. This agreement for the supply of engineering services will be signed shortly.

The French major is proposal to build two new European pressurized reactors (EPR) each, with an output in excess of 1,600 Mw. It is in discussion with the Indian government to supply reactors for setting up a nuclear power park at Jaithalpur in Maharashtra. The government plans to build five such parks, each with an investment of Rs 40,000- 50,000 crore.

In June, Areva’s supervisory board approved plans to sell its T&D business to bridge a $15.5 billion funding gap in its nuclear power expansion programme. Areva T&D India, has a market capitalisation of Rs 7,300 crore.

BHEL is in talks with Areva and other leading reactor makers for building nuclear reactors and is planning a forging and castings joint venture with Areva and Bharat Forge. Larsen and Toubro (L&T) is in discussions with four global reactor majors, including Areva, for the engineering, procurement and construction (EPC) business in nuclear power.

Source: Business Standard