NPC, Areva to sign two key pacts on Jaitapur

State-run Nuclear Power Corporation (NPC) and French nuclear power major Areva would sign two crucial agreements tomorrow for developing a 10,000-Mw nuclear power project at Jaitapur in Maharashtra.

The agreements — a general framework agreement (GFA) and an early works contract — would fine-tune the scope of works and estimated cost of the project, and are expected to be inked in the presence of visiting French President Nicholas Sarkozy in New Delhi. This was confirmed by NPC chairman and managing director S K Jain on late Sunday evening.

Signing of the two deals is crucial especially when the Ministry of Environment and Forests had given its clearance for the project on November 18.

The signing of these two agreements was necessitated during a memorandum of understanding (MoU) signed between the Nuclear Power Corporation and Areva in February 2009 for supply of six European Pressurised Reactors or Evolutionary Power Reactors (EPRs) of 1,650 Mw each for the Jaitapur project.

Initially, these two agreements would be for the supply of two EPRs by Areva. The project is expected to entail an investment of over Rs 1 lakh crore.

“The general framework agreement will list out the scope of work, terms and conditions of plant life, guarantees and warrantees, guaranteed plant load factor. It is quite important as we are looking at 60 years of life of reactor. GFA will also include the terms and conditions of nature of funding, debt funding,” Jain told Business Standard.

As far as the early work contract is concerned, Jain explained it would specify the design of the project, civil structure, intake of water as required under the coastal zone regulations.

Further, it would also make clear the excavation to be carried out.