Nalco, NPCIL ink pact for nuke power generation

The aluminium major National Aluminium Company Limited (Nalco) and the state owned Nuclear Power Corporation of India Limited (NPCIL) have signed a memorandum of understanding (MoU) for collaboration with each other for setting up nuclear power plants in the country.

A K Srivastava, chairman-managing director (CMD), Nalco and S K Jain, chairman-managing director (CMD) NPCIL signed the MoU. The proposed nuclear power plant will come up as joint venture (JV) between the two partners with Nalco’s stake being upto 49 percent. NPCIL will be the majority stake holder with at least 51 per cent equity, sources said.

The J V company would set up two nuclear power generating units (reactor units) at a mutually agreed location. A search committee headed by the executive director NPCIL will decide the locations. It will have a team of professional management headed by a chief executive officer for daily operations.

NPCIL is expected to co-ordinate with various organisations including the organisations under the department of atomic energy to avail specialized assistance for development of greenfield projects.

It may be noted, as part of diversification, the Navratna Nalco aims to play a major role in power sector. As a measure in that direction it has forayed into the nuclear power sector.

Sources said, the Government of India has reportedly decided to produce nuclear power with the support of Central public sector undertakings (CPSUs). In line with this decision, NPCIL has roped in Nalco. A 1000 Mw nuclear power plant with an investment of Rs.8500 crore is proposed to be set up initially, sources added.