NTPC-NPCIL joint venture facing issues

The technical problem is that any JV company formed by the PSUs does not become a PSU

The joint venture company between NTPC and NPCIL, Anushakti Vidhyut Nigam, is facing legal issues, as under the law only government or its agencies can undertake activities in the atomic field, a senior government official said here today.

CBS Venkataramana, Additional Secretary, Department of Atomic Energy, also said the government's ambitious target of creating 20,000 mw nuclear power may not be achievable under the current conditions.

"There is a small legal problem (for the tie-up between NTPC and Nuclear Power Corporation of India). Under the Atomic Energy Act, activities in the nuclear field are exclusively limited to the Government of India and PSUs owned by the GOI.

"The small technical problem is that any joint venture company formed by the PSUs does not become a PSU. That becomes a private company. So that legal problem has to be overcome. We have already submitted the amendments. The law ministry has approved it and it has to go before Parliament for approval," Venkataramana told PTI.

The official was in the city to participate in the Nuclear Fuel Complex (NFC) day Celebrations.

Two Indian major public sector corporations, NPCIL and NTPC in 2011 inked a memorandum of understanding (MoU) to incorporate a joint venture for setting up nuclear power plants. As per the agreement, the joint venture company will have 51:49 share-holding between NPCIL and NTPC.

NTPC would infuse up to Rs 1,000 crore investment and set up nuclear plants up to at least 2,000 mw, the then NTPC chairman and managing director R S Sharma had said.

Replying to a query, Venkataramana said as of now nuclear power plants with 5,300 mw combined capacity are under construction.

According to him, negotiations are going on with French nuclear engineering firm Areva S.A for the Jaitapur nuclear power plant. "If the talks are through, another 2,000 mw will be added to the capacity," he said.

Regarding Kovvada power plant in Andhra Pradesh, he said NPCIL is in touch with the local authorities for land acquisition. NPCIL proposes to set up nuclear power plant with the installed capacity of 10,000 Megawatts in Srikakulam District of AP.

Sekhar Basu Director of Bhabha Atomic Research Centre also participated in the NFC function.