M. Somasekhar

While NFC's role in fuelling nuclear aspirations of the country is quite clear, its efforts at meeting demands from the Indian industry are increasing in recent years.

Mr R. Kalidas, Chairman and Chief Executive of NFC.

THE Indian nuclear power sector seems to be upbeat receiving lots of attention from the Government, private sector and the global energy industry.

This has also brought in new enthusiasm among the host of industries and establishments under the Department of Atomic Energy (DAE) and the private sector.

While the July 2005 Indo-US nuclear agreement has raised lots of excitement and caution from some quarters, the way things have been progressing in the nuclear power sector in the past decade, also has a definite impact on the present enthusiasm.

The Nuclear Power Corporation, which runs the chain of power plants, has succeeded in operating units at capacity factor (equivalent of plant load factor in coal fired plants) of close to 90 per cent.

It has also turned up handsome profits, which could be ploughed back usefully. The Central Government's support has also helped it to take up at least nine new power units, adding more than 4500 MW by 2010.

The Russians supported 2 x 1000 MW reactors at Koodangulam, have also taken off and would be ready by 2009. With the Indo-US agreement and a possible softening up by the Nuclear Supply Group, France is expected to come up with an offer of setting up reactors.

The entry of the Indian private sector, for which efforts have been made by expert committees to propose changes in the Atomic Energy Act of 1962, would also push the prospects of growth up quickly in the nuclear sector.

In this background, the Hyderabad-based Nuclear Fuel Complex (NFC), which is the lone supplier of fuel to the existing 14 nuclear reactors, can look forward to some exciting times ahead.

The NFChas taken up the challenge and is gearing up to meet increased demands in the coming years.

It has initiated an expansion of its production facilities at its campus, is setting up a greenfield unit to make zirconium oxide and zirconium sponge in Palayakayal in Tamil Nadu and is contemplating a NFC-2.

While NFC's role in fuelling nuclear aspirations of the country is quite clear, its silent efforts at meeting the demands from the Indian industry are increasing in recent years. It has made a major mark in the domestic seamless steel tubes sector already.

The Chairman and Chief Executive of NFC, Mr R. Kalidas sees potential for the NFC to emerge as the `Hardware Supermarket', for a range of civilian industry, in addition to strategic space and defence in the near future.

In view of the opportunities, NFC is planning to expand its non-nuclear business and is also exploring increasing its export in the emerging global nuclear scenario. It has already exported heat exchanger stainless steel tubes to the UK, Brazil and Korea in recent times, he said.

The NFC's expertise in producing commercial grade zirconium also opens up opportunities of meeting the demands on the power sector and every area where corrosion is a big problem. Being resistant to corrosion, zirconium has tremendous potential for application in the industry. NFC has already supplied material to the Gujarat Narmada Fertilizer Corporation and the Rashtriya Chemicals and Fertilizers, IFFCO, FCI Kribhco and oil refineries.

The complex has the distinction of fabricating one of the longest, single cut, 23 metre (70 feet) long stainless steel tube for the steam generator of fast breeder reactor coming up at Kalpakam in Tamil Nadu.

Encouraged by this achievement, it is now in discussion to make a 30 metre long one soon, Mr Kalidas said.

Special materials such as tantalum, niobium, high purity gold and indium made can be targeted to various applications. The NFC is exploring the possibility of having a marketing tie-up with Sandvik India to promote various products, he said.

The non-nuclear component of NFC constitutes about 3-5 per cent of the total business. Defence, Indian Navy and private sector contracts have been bagged by the complex. Recently, a major order from ISRO for making titanium ally tubing has been obtained. Similarly, the NFC has been given the mandate to supply these tubes for the different stages of the Geosynchronous Satellite Launch Vehicle of the ISRO.

For the light combat aircraft, the NFC will manufacture hydraulic tubes and fabricate the shape-memory alloy developed by the Bhabha Atomic Research Centre, Mumbai.

With the nuclear power programme gradually growing in the past few years, the order-book of NFC has been quite healthy. During financial year 2004-05, it showed revenue receipts of Rs 577 crore against a revenue expenditure of Rs 460 crore.

On expansion plans during the Tenth Plan, the NFC has got a capital outlay of Rs 286 crore and the major projects, include the zirconium oxide and sponge plant at Palayakayal; renovation and modernisation of plants at NFC Hyderabad and their capacity enhancement.

The NFC has, over the years, established capability to deliver products and fuels for all the three stages of the country's nuclear power programme, envisaged by Homi Bhabha and the early pioneers of the Atomic Energy Department.

The three stages being the uranium powered, pressurised heavy water reactors ; the fast breeder reactors , and the thorium fuelled advanced heavy water reactors of the future.

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