India’s nuclear power generator, Nuclear Power Corporation (NPCIL) has projected an investment of Rs 1 lakh crore for nuclear capacity addition of 10,000 Mw by 2020. The cumulative funding for these projects would be on a 70:30 debt equity ratio.
Of the Rs 30,000 crore equity, NPCIL would contribute Rs 20,000 crore from its internal resources, while Rs 10,000 crore is expected to be mobilised by equity contribution from NTPC, Indian Oil Corporation (IOC) and National Aluminium Company (Nalco).
NPCIL has already inked a joint venture agreement with NTPC for setting up at least two reactors of 1,000 Mw each, wherein NPCIL would hold 51 per cent equity. IOC and Nalco, which have surplus reserves, have separately offered to contribute 50 per cent of the equity for the projects they go into with NPCIL. The latter’s Director (Finance), J K Ghai, told reporters on Monday that NPCIL had a cash surplus of Rs 12,000 crore and is able to mobilise Rs 1,000-2,000 crore through internal resources annually.
With the commissioning of the 2,000 Mw Koodankulam project in 2011, NPCIL’s ability to mobilise internal resources would double to Rs 2,500-3,000 crore in a year. “Thus, of the Rs 30,000 crore, NPCIL is in a comfortable position to contribute Rs 20,000 crore and the balance Rs 10,000 crore will come from JV partners such as NTPC, IOC and Nalco. While NTPC, being the largest power generator, plans to have a power purchase agreement with NPCIL, both IOC and Nalco plan to pump in money for a long-term reasonable return on their investments,” Ghai said.
He said NPCIL had not taken any budgetary support in the past five years from the government.
Ghai also said NPCIL had recently raised Rs 2,850 crore from the domestic market at competitive rates to meet the debt requirement of Rajasthan atomic units 5 & 6 and Kaiga 3 & 4. Of the Rs 2,850 crore, Rs 1,500 crore was raised through term loans from banks at 7.94 per cent for the first year and the balance Rs 1,350 crore through issue of bonds at 7.8 per cent yearly. As on date, NPCIL’s domestic debt is Rs 8,608 crore, bearing an average cost of 6.43 per cent per annum.
It is also exploring an option of acquisition of equity in uranim mines across the globe. So far, offers have come from Namibia and South Africa. “The acquisition of equity is crucial, as NPCIL will need nearly 8,000 tonnes of uranium per annum by 2020, from the current 800 tonnes per annum. The acquisition of stakes in uranium mines will help the procurement of uranium at lower cost,” Ghai said.
He said Korea has offered to supply nuclear reactors to NPCIL. So far, NPCIL has been holding talks with Areva, GE-Hitachi and Westinghouse for the procurement of reactors.
