India will receive a credit line of around euro 7 billion ($9.2 billion) from a consortium of French banks and institutions to fund supply of two EPR reactors and uranium. French energy major Areva will be supplying to the reactors and fuel to the government-owned Nuclear Power Corporation of India Limited (NPCIL) under two major deals for expanding the country's nuclear power generation base.
The French company is also in talks with NPCIL on the possibility of joint investment in uranium mines owned by Areva in different parts of the world. “Geo-politically it is important to split investment in different parts of the world,” Areva CEO Anne Lauvergeon said, without specifying the mines where the two companies might invest.
EPR reactors, that will be used at NPCIL's Jaitapur power plant in Maharashtra, are Areva's third generation high power output pressurised water reactors. “We will supply to NPCIL two safe, reliable and cost-effective EPR reactors, the first in a series of six, in Jaitapur. We will also supply uranium fuel for the lifetime of the six reactors,” said Lauvergeon. The six reactors, when commissioned, would be able to generate around 10,000 Mw of power. India currently has over 4,100 Mw of installed nuclear power generation capacity.
Lauvergeon said that the overall size of the deal is around euro 7 billion, including the two reactors and uranium supply for 25 years. Areva and NPCIL were currently in the process of tying up funds pending issues. “We have to finalise financing with banks. We have to fix interest rates, as they would determine the tariff for the electricity,” she said.
She added that the “life time guarantee” for supply of uranium to NPCIL was important, as it would mean the deal stands irrespective of the bilateral political situation that develops between the two countries in future. “It is a commitment on safety and security you cannot bargain with,” she said.
Replying to a question on whether Areva finds the provisions in the Indian nuclear liability law, Lauvergeon said “implementation rules” for the terms and conditions of the contracts would hold the key to making liability law conducive for business. “After Bhopal, nuclear liability is a politically sensitive issue. If changes are made by the utility (operator) after the plant is awarded, who is responsible in case of a problem?” she asked.
India and France had signed an inter-governmental deal on cooperation in the field of peaceful applications of nuclear energy in September 2008, paving way for collaboration between Areva and NPCIL.
