Eyeing the over $100 billion civilian nuclear market in India, Russia's global nuclear project company Atomstroyexport is holding talks with Larsen and Toubro for setting up a joint venture to manufacture equipment required for construction of atomic power plants.
Atomstroyexport, which is building two 1000 MW reactors at Kudankulam in Tamil Nadu, said it has decided to set up an equipment manufacturing unit in India considering the boom in the nuclear business and cut down timeframe for construction of atomic reactors.
"We are going to set up a joint venture for production of equipment required for construction of nuclear power plants. We are currently holding negotiations with Larsen and Toubro," said Georgy O Kumani, Vice President of Atomstroyexport, a subsidiary of Rosatom, the state-run nuclear corporation
At present, L&T manufactures reactor vessels for pressurised heavy water reactors and fast breeder reactors. It has also designed technology and critical equipment and systems for heavy water plants, fuel re-processing plants and plasma reactors.
Kumani said the proposed production unit will initially manufacture general equipment and at a later stage will make critical parts of nuclear power plants (NPP).
Asked about investment and share holding pattern of the joint venture, he refused to elaborate. "We are yet to firm up the deal."
Although commissioning of a nuclear power plant takes three to seven years, Kumani said the company will be able to operationalise one plant every year after setting up the manufacturing unit provided the company gets good number of contracts for building NPP.
Kumani said the manufacturing unit will be operationalise before Atomstroyexport starts construction of two more atomic power plants in Kudankulam.
Russia's concerns over some clauses of the nuclear liability law has led to delay in finalising contracts for building these two plants.
"We have already carried out extensive preparations for setting up unit three and unit four at Kudankulam. We hope to resolve the hurdles soon," Kumani said.
Atomstroyexport has already signed an agreement with Nuclear Power Corporation of India Limited (NPCIL) for carrying out the first priority design for the two reactors.
Kumani said the first unit of Kudankulam nuclear power plant will be operational by early next year as its construction has already been completed. The second unit is expected to be made operational within a year of commissioning of unit-1.
The Atomstroyexport official said he considers India as a very fast growing market for civilian nuclear power project. The company has already built 31 nuclear power units in seven countries, including China and Iran.
