The Hindu : Nuclear power sector to seek more investments

Online edition of India's National Newspaper
Wednesday, Apr 03, 2002

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Nuclear power sector to seek more investments

By R.K. Radhakrishnan

KAIGA (Karnataka) April 2. Moves to amend the Atomic Energy Act "suitably'' to bring in "additional investments'' in the nuclear power sector are "currently in progress,'' the Atomic Energy Commission (AEC) Chairman, Anil Kakodkar, has said.

"The additional investment in the nuclear power sector could be from abroad, could be from the private sector. The Atomic Energy Act at this point had a particular framework'' and this needed some "adjustment,'' he said. The adjustment had "to be reflected through a suitable amendment and that work is currently in progress.''

The investment had to be in the form of equity in some form but it could take different forms, Mr. Kakodkar added, elaborating on the nature of the investment the Commission and the Nuclear Power Corporation (NPC) was thinking of. But the AEC was not talking about a complete change in the existing modes of operation. "The existing modes continue. Everything we want to do we want to do additionally,'' he said and added that if a company was attractive enough there would be no dearth of investors. "The market in India is so large. And I don't see any sign of any saturation for several decades,'' he added.

The NPC chairman and managing director, V.K.Chaturvedi, was blunt: The need to meet the goal of generating 20,000 MWe from nuclear power plants by 2020 meant that the NPC needed some flexibility. "Today it is a very rigid framework.'' The company was unable to capitalise on its goodwill in the market. "The Government is committed to give us, on a reduced basis, budgetary support, only up to the eleventh plan. Our own resources plus borrowings will be enough to support an addition of 3,000 MWe per annum. That is the situation now,'' he said. But if the capacity addition had to be increased at a quicker rate, then finance had to be raised from outside.

Mr. Chaturvedi hastened to add that strategic materials would still remain within the control of the Central Government. "The world over, nuclear material is always controlled. So will be the case in India, as part of the national policy. Bringing in the private sector does not mean that you don't worry about these materials,'' Dr. Kakodkar said.

On the question of adding to the proposed capacity at Koodankulam with Russian help, the AEC chairman said there was "nothing like open arms'' when it came to business deals. In principle, Koodunkulam would have more plants, he added. But "it has to be an attractive business proposition."

The Koodankulam site can accommodate six units. "If anybody, including Russia, gives a proposal which is beneficial to us, we will certainly consider it. Otherwise, we have our own programme... a very strong programme. We can put up four indigenous 700 MWe units there," Mr. Chaturvedi said.

Responding, the Russian Deputy Prime Minister for Atomic Energy, E.A. Reshet Nikov, said that in every meeting the two sides were discussing possibilities of setting up more units at Koodankulam. "I understand that it is not the best possible scenario for India to have the new technology only in two units. It is not beneficial to India."

"Our President, Vladimir Putin, is visiting India later this year. The question will be solved at that time," he said through an interpreter.

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