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Nuclear Power Corporation (NPC), Areva and French banks and financial institutions will negotiate terms and conditions to provide funds for the development of 9,900 MW Jaitapur nuclear power project in Maharashtra. The meeting is slated for June 5 & 6 in France.
NPC and Areva will also hold talks on minimizing the project cost and the per unit tariff especially in the wake of inclusion of additional safety applications in the wake of Fukushima nuclear accident took place in March 2011.
A team comprising Dr CBS Venkataraman, additional secretary, Department of Atomic Energy (DAE), Preman Dinaraj, director (finance), Nuclear Power Corporation and Sandeep Singhroy, Jaitapur project director has already left for France on Sunday night to participate in the proposed meeting.
DAE official, who did not want to be identified, told Business Standard “All efforts are being made to see that Jaitapur project becomes a reality. The whole exercise is taking time as we don’t want to see a repeat of Dabhol power project which was revived after a five year closure following cost and tariff escalations. In case of Jaitapur project, safety is given a top priority. Besides, focus is given on how electricity will be supplied at a reasonable price.”
The official said the talks will ensure that theper unit cost is bare minimum.
However, DAE official refused to divulge further details with regard to the project cost and the per unit tariff citing that it won’t be possible unless and until negotiations are complete.
NPC official expressed his inability to provide exact numbers in this regard. However, the official said during the first phase Areva will supply two evolutionary pressurized reactors (EPRs) with generation capacity of 1,650 MW will be set up at the Jaitapur project site and subsequently four more of the same capacity each will be installed.
The project is proposed to be set up with 70:30 debt equity ratio.
But the Jaitapur project opponents including Konkan Bachao Samiti said the NPC will have to spend a per unit megawatt cost of Rs 38 crore while the per unit tariff is estimated at a record Rs 14. The total project cost works out to be a whopping Rs 3,76,200 crore.
In a related development, local residents and project opponents are holding two day protests on June 4 & 5 opposing fund supply to Jaitapur project. Besides, they will reiterate their demand for the cancellation of Jaitapur project.
