India to focus on time-bound projects with Russia, France & US

Mumbai, Oct 12 (PTI) With the historic signing of 123 agreement with the US, India now will focus on time bound projects with that country as well as France and Russia under the technical cooperation for the expansion of its nuclear power.

The signing of 123 agreement with the U.S. is an enabling step to move forward in the expansion of nuclear power in the country. But India along with these three countries has to carry out a lot of diplomatic and technical procedures concurrently to operationalise the agreements, Chairman, Atomic Energy Commission, Dr Anil Kakodkar, who returned from U.S. last night, told P.T.I.

Several steps, including ratification of these agreements, commercial negotiations and International Atomic Energy Agency (I.A.E.A.) safeguards, have to be carried out, he said.

India will first put Tarapur units 1 and 2, Rajasthan units 1 and 2 and Koodankulam units 1 and 2 that are already under separate safeguards agreement with I.A.E.A. under the single umbrella of India specific safeguards agreement, Kakodkar said.

"Of course, before placing the Indian reactors under I.A.E.A. safeguards as per the separation plan, it is important to kick-start the nuclear cooperation and that is very crucial," he said.

Meanwhile, the American and the French companies are
expected to begin their serious discussions shortly with
Nuclear Power Corporation of India Limited (N.P.C.I.L.), a
government of India undertaking that deals with nuclear power.

Although for the last three years, N.P.C.I.L. had
periodic discussions with these three countries which were
exploratory and preparatory, "now onwards we will be
concentrating on time and objective bound programme for the
expansion of nuclear energy in India," chairman and managing
director, N.P.C.I.L., S.K. Jain said.

India has decided to operationalise all three
agreements simultaneously but it will take at least two years
before the U.S. and France begin their first nuclear power
plant's construction in India as there are a lot of
preparatory work required, Jain said.

The processes for two of the proposed Russian plants
can be completed within a year and even can go for starting
construction by the end of 2009, once Russian President Dmitry
Medvedev during his visit to India in early December signs the
Nuclear deal, he said.

France is said to be keen on starting uranium supply
immediately and wants India to sign the agreement that would
allow Areva, its builder of nuclear reactors, to set up
European Pressurised Reactors in India.

For the future imported reactors from Russia, there
is already the site at Koodankulam in Tamil Nadu, which has
got all clearances and approval.

Currently two reactors of 1000 M.W. are under
advanced stages of construction. Whereas, for setting up the
European Pressurised Reactors by the French, the site has been
selected tentatively as Jaitapur in Ratnagiri district of
Maharashtra and has to get the final approval from the
government, Jain said.


For reactors from the U.S., the site is yet to be
finalised although N.P.C.I.L.'s site selection committee has
submitted atleast three sites along the Indian coast for the
purpose, he said.

According to sources in the U.S., a business team from
there is expected next month to negotiate with N.P.C.I.L. and
Department of Atomic Energy.

"There are loose ends which India still has to tie
with I.A.E.A. on more comprehensive safeguards and with the
U.S.A. on programmatic consent," top nuclear business official
Dr Vijay Sazawal said. "In any way, reactor deals take over
two years to cook and so many things will happen
concurrently," he said.

N.P.C.I.L. wanted to work out through parallel paths,
namely product technology evaluation, ensuring licensing in
India (through Atomic Energy Regulatory Board), Sazawal said.

It will also work out responsibilities on either side
to assess and estimate cost on supply chain including
localisation and economic evaluation which could lead to a
techno-commercial viable proposals, he said.

"We will work out long-term fuel supply for imported
reactors and import of uranium for Indian civilian reactors,"
Jain said, adding India will also work out long-term
partnership not only to meet power requirement but to look for
export market jointly also.

Jain said the techno-commercial offer for the
imported reactors will include the funding arrangement where
there will be 70 percent debt borrowing and 30 percent equity.
"Equity funding is not a problem and for debt
borrowing several instruments options will be considered
including external and internal borrowing through Exim bank,
soft loans and suppliers' credit," he said.

"Of course, due to current liquidity crunch it has to
be planned carefully and all these exercise may take almost a
year," he said.