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CCEA green signal for Kudankulam

Our Bureau

NEW DELHI, Nov. 3

THE Cabinet Committee on Economic Affairs (CCEA) today accorded financial sanction to start the construction of the Kudankulam Project Unit 1-2, in Tamil Nadu, with an installed capacity of 1,000 MW.

The nuclear power station will be set up with Russian technical assistance. The first unit is expected to be commissioned by 2007 and the second in 2008.

The approval comes on the eve of the Prime Minister, Mr Atal Bihari Vajpayee's visit to Russia starting tomorrow.

The CCEA has also approved signing of a general agreement with the Russian side stipulating the general terms and conditions and price of various contracts within the agreed price by Nuclear Power Corporation of India Ltd.

It has approved proposals for financial sanction and allocation of Rs 13,171 crore, of which Rs 6,755 crore would be the Indian expenditure and the rest would be met out of Russian soft credit.

The CCEA has also approved allocation of total funds of Rs 2,129 crore, including Rs 367 crore as equity, and the balance as Russian credit for the procurement of fuel, as budgetary support to Department of Atomic Energy.

The unit energy cost of power from Kudankulam in 2007-08 is estimated to be Rs 3.08. When the project is completed, 2,000 MW installed capacity will be added to the Southern Grid and the project will generate 11,941 MUs of power per year at a normative c apacity factor of 68.5 per cent, a press release said.