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New firm to oversee construction of reactor

By R. Prasad

CHENNAI. FEB. 8. The pre-project work at the Rs. 2800-crore 500Mw prototype fast breeder reactor (PFBR) in Kalpakkam is in full swing. A separate company is to be floated to oversee the construction of the reactor. The new company will have representatives from the Indira Gandhi Centre for Atomic Energy, Kalpakkam, and the National Power Corporation. Speaking to the Hindu, S.B. Bhoje, Director, IGCAR, said that the new company would be allowed to source 20 per cent of the total project cost from the market.

Floating a new company seemed practical because, IGCAR being a Government institution, would not be able to raise money from the market. Also, accessing the market for funds would bring about a more professional approach in running the reactor, which means it will not be treated as a facility for research and development. "It will make the personnel more responsible to run the reactor commercially," he said. Forming a separate company is being seen as a viable solution for the NPC for various reasons — it already has eight projects coming up and is financially committed. Timely execution of the project is a must as the stakes are as high as Rs. 3 crores a day.

Also it would like to spread the risk as the fast breeder reactor technology is new. The proposal is to float bonds to the tune of 20 per cent project cost though no decision has been taken to restrict the offer to financial institutions alone. In all probability, the next fast breeder reactor may have nearly 50 per cent of the project cost offered to the public. According him, PFBR would not factor in any R and D cost while fixing the tariff. But the future ones may indeed have such factoring done. "This way, we can get back the entire Rs.1000 crores invested at IGCAR in about 20 years' time."

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