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| Alstom JV with BHEL, NPCIL to supply equipment to nuclear project |
| Press Trust of India / Chattanooga, US Jun 24, 2010, 11:36 IST |
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French energy equipment major Alstom today said it has finalised a tripartite joint venture agreement with state-run BHEL and Nuclear Power Corporation of India (NPCIL), a development that would help the company to tap about 45,000 MW of Indian nuclear power market.
"Joint venture tripartite agreement with BHEL and NPCIL has been finalised and is being reviewed by the Atomic Energy Commission," Alstom Power Senior Vice President (Thermal Products) Guy Chardon told reporters here.
Alstom's Indian arm APIL, power equipment maker BHEL and Nuclear Power Corporation of India Ltd (NPCIL) are setting up a joint venture company to provide technical support and supply turbines to nuclear power projects in India.
"We will be one-third equity partner in the joint venture company with a capital of 25 million euros ... We want the agreement to be finalised as quickly as possible," said Chardon, who is here for the inauguration of turbine manufacture facility of Alstom.
Initially, the joint venture will supply turbines to eight units of 700 MW each being developed by NPCIL. The value of supplies is likely to be around Rs 6,000 crore, he added.
India is developing eight nuclear reactors of 700 MW each in the states of Haryana, Gujarat, Rajasthan and Madhya Pradesh, based on heavy water technology.
Besides the indigenous projects, the joint venture will also be looking at the nuclear projects being developed in pursuance of the India-US Civil Nuclear Agreement. The proposal is to develop about 36 units of over 1,000 MW at six sites in India with support from the US, Russia and France.
The turbines for the NPCIL projects, according to Chardon, would be supplied from the BHEL plants and upcoming manufacturing facilities being set up by a joint venture between Alstom and state-owned Bharat Forge at Mundra in Gujarat.
The tripartite agreement involving NPCIL will give a strong foothold to Alstom to supply equipment for the nuclear plants. "The joint venture will take advantage of the opening up of the Indian nuclear market," Chardon added. Several Indian and overseas companies have also expressed desire to enter the nuclear power sector.
Talking about the new facilities being developed at Chattanooga plant with an investment of about $300 million, Philippe Joubert, President, Alstom Power said, "it will have the capability to manufacture turbines which can generate up to 1,700 MW of power."
It is important for the nuclear power plants to go in for large generation capacity, he said, pointing out the cost of setting up such plants is very high as compared to conventional coal or gas based projects.
After a gap of three decades, the US has decided to set up a nuclear power plant, he said, adding the move would re-generate interest in the sector. Moreover, he hoped that Alstom would be able to get orders for replacement of equipment in ageing nuclear power plants in the US.
As regards India, he said, company would be focus on providing cleaner technology for power plants. The efforts would include support for non-conventional sources of energy like wind, solar, geothermal and biomass, besides nuclear, Joubert added.
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