 "Make in India: Jaitapur project to see up to 70% local input, says French nuclear firm")
Talks between Nuclear Power Corporation of India (NPCIL) and Electricite de France (EDF - French public utility) to sign a commercial agreement for the 9,900-Mw Jaitapur nuclear project in Maharashtra are underway. In an interview with Sanjay Jog, EDF's chief negotiator Vakis Ramany speaks on project development strategy.
When will the final deal for the Jaitapur nuclear power project be signed?
In June 2015 EDF had been designated by the French government as the Leader of the French Nuclear Industry for all reactor-related activities. So, now EDF leads the discussions on the Jaitapur project with the support of AREVA NP, on the Nuclear Steam Supply System, and of AREVA, on Nuclear Fuel. The exact association between the parties will be detailed later to fit the proposal.
NPCIL and EDF have signed a memorandum of understanding, in line with the road-map agreed at the government level in the beginning of 2016. A first techno-commercial proposal was submitted and presented in mid-June 2016 by EDF. We are on track to bring together the key elements critical to the economic viability of the project. Discussions are ongoing and target is to converge on a general framework agreement by mid 2017. We are working to provide the safest, most cost-effective and efficient project to our client and partner, NPCIL.
When the project development is launched, we expect the first unit to take up to 78 months to build and the subsequent units to take 72 or less.
Will the cost be competitive in comparison to coal-based and renewable power projects?
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It is the role of NPCIL and the Department of Atomic Energy to determine the overall budget of the Jaitapur Nuclear Programme and its expected tariff. We view the move by the Indian government to look at a firm order for six evolutionary prassurised reactors (EPRs) at Jaitapur as a very cost-efficient approach. Building six EPRs on the same site will lead to significant synergies, savings and industrial de-risking. Beyond the economies of scale, we will also be looking at localisation as a cost optimisation lever where it is sensible. We are confident we can make the Jaitapur project economically viable for India.
How will localisation help in cutting cost?
Given the capabilities of the Indian nuclear industry, EDF expects that localisation will bring cost advantages to the nuclear programme. EDF has had a positive localisation experience in the past and is therefore confident in its ability to meet the Indian government's expectations in that regard. We expect the localised parts to increase significantly from a minimum of 20 per cent to 30 per cent for the first units to potentially up to 60 per cent to 70 per cent for the last units.
EDF is focusing its efforts to develop and work with quality-focused Indian suppliers. In October this year, we developed a localisation programme in cooperation with Larsen & Toubro. It also paved the way for partnership opportunities and to allow suppliers to qualify for joining our "supply chain". Just like other countries where we have built reactors, we work on developing a supply base that is closer to the project for better project management and cost control.
Have your concerns over civil nuclear liability been addressed?
EDF is currently reviewing the mechanism put in place through the insurance pool with General Insurance Corporation of India. Good progress has been made on these matters. Some points still need to be clarified between the stake holders and are being analysed. We are confident that the right processes are in place, including involving the French and Indian administrations, to find adequate solutions.