'India can become a nuclear supply hub'

, chairman and managing director of Nuclear Power Corporation of India Ltd, (NPCIL) and the country's fast breeder reactor project company Bharatiya Nabhikiya Vidyut Nigam Limited (Bhavini), will assume an additional role as president of the World Association of Nuclear Operators (WANO) next month.

WANO is a global body that unites all nuclear electricity operators in the world. Jain talks about the opportunities for the growth of industry and exports that the Indo-US civil nuclear cooperation deal throws up, in an interview with PB Jayakumar. Excerpts:

How do you view the current debate on the Indo-US nuclear deal?

This is a good opportunity for India. The embargo on us by the international community, following the nuclear explosions in 1998 and earlier in 1974, will be lifted.

The deal has a long way to go, as India needs to negotiate and ensure all required safeguards, including the liability factor on wastages, with the International Atomic Energy Agency (IAEA). After that, the Nuclear Suppliers Group (NSG) has to give an unconditional waiver and then the deal becomes relevant and important for us.

Why is the deal important for us?

I feel the most important development for us is access to fuel (uranium) from different parts of the globe. Our reserves can only meet up to 10,000 Mw of capacity expansion and we have already installed half that capacity.

The global access to uranium will help us hasten our expansion plans. The deal will facilitate imported reactors with lifetime guaranteed fuel. This will accelerate our programme to the next stage in nuclear development strategy into fast breeder reactors.

From the industry point of view, this will enable the country to become a major supply hub for the nuclear power industry globally. Considering the present capacity addition plans in countries like China, India and Russia, it is estimated that at least 100 reactors will come up in different parts of world in the near future.

But there are only four major manufacturers of modern-day reactors - White Westinghouse of Toshiba Corporation, General Electric, Rosatom of Russia and Areva of France "� resulting in a big demand-supply mismatch. Indian industry has proved to be technologically equipped and cost competitive to outsource work from these manufacturers.

Further, most of the vendors supply only the reactors and critical components. Key areas like design, architecture and other parts have to be sourced from elsewhere.

Companies like NPCIL and those that can master this can leverage the opportunity in this area. Going forward, Indian companies may also be able to form joint ventures to set up projects abroad.

Why are the players like Reliance Energy and Tata Power showing interest in nuclear energy?

It is business, in simple terms. Running a 1,000 Mw thermal plant requires around 30 million tonnes of coal a year and the logistics involved are huge.

Further, stocks have to be kept for about three months, requiring storage facilities. As against this, the same 1,000 Mw plant can be run with 30 tonnes of uranium per year. Also, the new-generation nuclear plants are of high quality and ultra safe, which gives the new players confidence to enter the field.

NPCIL's shares are all owned by the government and so far India has not allowed private participation in nuclear energy production. If privatisation is allowed in this sector, what could NPCIL's role be in the future?

As a profit-making public sector unit, we are ready for the competition, since power may be traded like any commodity. Hydel and thermal power have now been privatised and nuclear power also may be opened up.

We have an immaculate track record of many decades in running and setting up nuclear power projects and know the industry and its regulatory processes.

Our core strength can be offered to the new players to set up projects on even a consultancy basis. But our dream is to have the NPCIL stamp, in one form or other, on every MW added to India's nuclear power capacity.