Sources here are indicating that the long-pending Jaitapur nuclear power project with Areva will be inked during Prime Minister Narendra Modi's visit.
For the French energy major, inking a deal with India during Prime Minister Modi's visit will be a much-needed boost.
The nuclear engineering firm that has over 45,000 employees is struggling to stay afloat.
French media sources report that that the alternative energy company has been reporting annual losses for four consecutive years.
Delays in construction of nuclear power plants in Finland and Flamanville have resulted in huge losses.
Also Read
Areva claims that its facilities are safe and have cutting edge technology. But internationally, questions are being raised on the high cost and high risk of nuclear power plants.
The March 2011 Fukushima disaster has also put on hold several decisions by countries to opt for nuclear energy.
Areva is set to construct six nuclear reactors in Maharashtra which need a final nod by the new BJP Government.
French media is reporting that an agreement would be signed in energy cooperation under the umbrella of the India-France civilian nuclear accord.
Areva is one of the world leaders in nuclear power which provides utilities that cover every stage of the nuclear fuel cycle from reactor design and construction and operating services.
The French state owns an 87 percent stake in the nuclear power company and it would be a shot in the arm for the government if it can conclude the India deal this week.
The French state has been working on a plan to include partnerships for capital increase in the company.
Areva had signed a Memorandum of Understanding (MoU) in 2009 with the Nuclear Power Corporation of India (NPCIL) to construct six units of 1650 megawatts (MW) each in Jaitapur, Maharashtra, but protracted negotiations over pricing and liability issues have held back the deal.
As per reports the hard-nosed bargaining was to bring down the price from Rs.9 range set by France to Rs.7 as India wants.
Energy hungry India is keen to power its industry and the Prime Minister has oft repeated that for his "Make in India" project to succeed, he needs the manufacturing industry to pick up pace.
A landmark Framework Agreement on Civil Nuclear Cooperation was signed between India and France on September 30, 2008 during the visit of Prime Minister Dr. Manmohan Singh to France.
Subsequently, during the visit of President Nicolas Sarkozy to India from December 4 to 7, 2010, the General Framework Agreement and the Early Works Agreement between NPCIL and Areva for implementation of EPR NPP Units at Jaitapur were signed.
According to report of the Embassy of France in India, civilian nuclear cooperation constitutes one of the cornerstones of the Indo-French strategic partnership.
The 2008 cooperation agreement between the two governments has set the framework of exchanges not only at the industrial and commercial levels, but also with regard to research and development, nuclear safety, education and training.
On the industrial front, AREVA, which sold in 2008, 300 tons of nuclear fuel to the public electricity utility Nuclear Power Corporation of India Limited, submitted a tender for two EPR reactors (2 x 1650 MWe capacity) for the Jaitapur site, along with their fuel supply.
Eventually, the site is due to house four other similar reactors (10,000 MWe capacities).
With regard to research and development, various bilateral agreements provide for exchanges between French organizations (CEA, ANDRA) and Indian ones (DAE, IGCAR, BARC, HBNI) in the fields of reactor safety/security, basic research, radioactive waste management, non-electrical applications of nuclear energy.
Cooperation in education and training includes a Master's degree in nuclear energy.
Further, exchanges have been established between the nuclear safety authorities of the two countries and their technical supports.
On the multilateral front, India is participating in major international research and development projects such as the Jules Horowitz Reactor (nuclear fission) and ITER (thermo-nuclear fusion). (ANI)
.
