Talks between Nuclear Power Corporation of India (NPCIL) and Electricite de France (EDF, a French public sector entity) are on to sign a commercial agreement for the 9,900 Mw Jaitapur atomic power project in Maharashtra. Vakis Ramany, senior vice-president of EDF's international division, to Sanjay Jog. Edited excerpts:
When will the final deal be signed?
In June 2015, the French government designated EDF as leader of France's nuclear industry for all reactor-related activity. So, we now lead the discussions on Jaitapur project, with the support of Areva on the steam supply system and nuclear fuel. The exact association between the parties will be detailed later, to fit the proposal.
NPCIL and EDF have signed a memorandum of understanding, in line with what was agreed at the government level in the beginning of 2016. A first techno-commercial proposal was presented by us in mid-June. We are on track to bring together the key elements critical for the project's economic viability. The target is to converge on a general framework agreement by mid-2017. When the project development is launched, we expect the first unit to take up to 78 months to build and the subsequent units to take 72 months or less.
Will the cost match with coal and renewable power projects?
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It is the role of NPCIL and the department of atomic energy to determine the overall budget of the Jaitapur programme and the expected rates. We view the move by the Indian government to look at a firm order for six evolutionary pressurised reactors (EPRs) at Jaitapur as a very cost-efficient approach. Building six EPRs on the same site will lead to significant synergies, savings and industrial de-risking. Beyond the economies of scale, we will also be looking at localisation as a cost optimisation lever. We are confident we can make the Jaitapur project economically viable for India.
How will localisation cut the cost?
Given the Indian nuclear industry's capabilities, EDF expects this to happen. We have had positive experience in the past and are confident of meeting the Indian government expectation in that regard. We expect the localised part to increase significantly, from a minimum of 20-30 per cent for the first units to potentially up to 60-70 per cent for the final ones.
EDF is focusing its efforts to develop and work with quality-focused Indian suppliers. We developed a localisation programme in particular through cooperation with Larsen & Toubro (L&T) on 21 October, this year. It paved also the way for partnership opportunities and for the qualification allowing suppliers to join our "supply chain". Just like other countries where we have built reactors, we work on developing a supply base that is closer to the project for better project management and cost control.
Are your concerns over the India's civil nuclear liability addressed?
EDF is currently reviewing the mechanism put in place through the Insurance pool with GICre. Good progress has been made on these matters. Some points still need to be clarified between the stake holders and are being analyzed. We are confident that the right processes are in place, including involving the French and Indian administrations, to find adequate solutions.
