Nuclear Power Corporation (NPC) and Areva will begin talks from Tuesday onwards to finalise the final works contract for the 9,900 Mw Jaitapur nuclear power project in Maharashtra.
Initially, Areva is expected to supply two evolutionary pressurised reactors (EPRs) of 1,650 Mw each to NPC and subsequently four more EPRs.
A high-level Areva team led by its Senior Vice-president Yves Lintz would come for the talks.
Both the parties want to exchange finalise on documents during the ensuing visit of French president Francois Hollande on February 14-15. In December 2010, Areva had signed early works contract with NPC on this regard and both launched talks to enter into final works contract.
However, the Fukushima accident in march 2011 delayed the negotiations.
Areva and NPC revisited safety and security applications of EPRs and came out with their respective reports with additional measures.
Jaitapur project director CB Jain told Business Standard "NPC and Areva will continue talks. All efforts are in the direction of reaching at an agreement. Safety is of a paramount importance." He admitted that the cost is the key issue apart from the per unit tariff for the power generated from the Jaitapur project.
Recently, external affairs minister Salman Khurshid had announced that the talks between India and Areva had reached a "very advanced stage. " He had told reporters that "We have to settle the questions of safety raised by the tsunami in Japan and this has an effect on the unit price of energy produced."
NPC official, who did not want to be identified, said the inclusion of additional safety and security applications in the EPRs is expected to surge cost of its supply and the subsequent rise in the project cost and the per unit tariff. "However, this can be minimized if Areva ropes in local manufacturers and suppliers. The location will help reduce both the cost and tariff without compromising the safety and security," the official noted. He recalled that before the Fukushima accident the project cost was estimated to be around Rs 1 lakh crore and the per unit tariff of Rs 3.40 to Rs 3.50.
They are expected to exchange agreement papers on the occasion of French President's visit slated for February 15 in Mumbai
