Date:23/02/2006 URL: http://www.thehindubusinessline.com/2006/02/23/stories/2006022304050100.htm

Back Nuclear boost: French major Areva keen to enter Indian market

Anil Sasi

Areva plans to enter into civilian nuclear trade could hinge on a possible US-Indian nuclear agreement widely expected to be signed during the US President, Mr George Bush's visit, which would end three decades of international sanctions on nuclear trade with India.

New Delhi , Feb. 22

WITH France taking a step towards extending civilian nuclear expertise to the country and the impending visit of the US President, Mr George W. Bush, here next month, global nuclear biggies are firming up plans to enter the Indian market.

French nuclear energy giant Areva is among those eying the Indian market.

"We are ready to enter the civilian nuclear market here and we have the products (for the Indian market).

"Progress has been made during the bilateral talks between the two sides and once all the pending issues are sorted out, we are eager to get into India," Mr Philippe Guillemot, Member of the Areva's Executive Committee and the Chairman and CEO of Areva T&D told Business Line.

He said that company could also be looking at the possibility of tying up with an Indian player for its foray here, though adding that it was a little "premature" to talk about the issue.

The international reactor and fuel-supply business is controlled by four to five large global firms, including US's Westinghouse and Areva.

The Areva Group is a key player with a presence in both reactor design and construction, and front-end and back-end services, including fuel fabrication and spent-fuel reprocessing.

Areva is also a big player in China's nuclear energy market.

During French President Mr Jacques Chirac's visit to India this week, France took a step toward in providing civilian nuclear expertise to India by signing a deal aimed at helping the country's growing economy tackle an energy crisis.

The agreement came during bilateral talks and is expected to be a precursor to a full-fledged civilian nuclear deal.

Areva plans to enter into civilian nuclear trade with India, however, could hinge on a possible US-Indian nuclear agreement widely expected to be signed during the US President's visit, which would end three decades of international sanctions on nuclear trade with India.

According to analysts, a concrete Indo-French deal on future nuclear co-operation is expected to be inked only after New Delhi and Washington agree on a bilateral nuclear technology pact, bypassing the Nuclear Non-proliferation Treaty, which India has always refused to sign.

Progress has been held up over a US demand to separate India's military and civilian facilities.

Areva has reportedly estimated that India needs 25 to 30 nuclear power stations for fuelling the booming economy and the French major's expertise in building large reactors is expected to be in line with the technology that India is looking for.