'Power companies to be minority stake holders in nuclear projects'

Private-sector players in the power sector, including Tata Power, Reliance Power, GMR, GVK, Lanco and others, would have to go for a joint venture (JV) with the state-run Nuclear Power Corporation (NPC) to foray into nuclear sector.

Similarly, nuclear power generating companies from abroad won’t be in a position to set up nuclear plant, but they could be involved in supply chain management in India, announced Minister of State for Science and Technology Prithviraj Chavan here on Saturday. He was speaking at an interaction meeting.

“Private sector will have to be minority stake holders in its alliance with NPC. The nuclear sector is not opened fully for the private sector being its peculiar nature. Let them have experience with NPC, which has installed 19 reactors in the country,” said Chavan.

Chavan said private sector companies might pick up 10 per cent, 15 per cent, 26 per cent or 49 per cent equity in the JV with NPC but they could not go alone to develop nuclear capacity in the country as of now. Similarly, foreign players could be part of India’s $150-billion nuclear sector as supplier of reactors, but not as an independent developer. He informed that NPC had already entered into JVs with NTPC and Indian Oil Corporation to add nuclear capacity in the country.

Chavan refuted charges that passing the nuclear liability bill ahead of US President Barak Obama was to please the US. “This is not a reality as NPC is involved in talks with four companies – Areva SA, France, Rosenergoatomm, Russia, GE-Hitachi, US-Japanese and Westinghouse-Mitsubishi US-Japanese. A Korean company has also shown interest. NPC in due course of time can independently start talks with Japanese and Korean companies. Apart from Obama, President Nicolas Sarkozy and Russian President Dmitry Medvedev are also visiting India this year,” he said.

According to Chavan, these foreign suppliers would not be selected at random but they would have to go through multi-layer clearance system, both in their respective countries as well as in India.

Chavan admitted that due to the timely floor management, the government was able to pass the nuclear liability bill in the parliament. He informed that the Centre has roped in five leading national legal firms to make rules under the Civil Liability for Nuclear Damages Bill 2010. These rules are essential to finalise agreements to purchase nuclear supplies. He hoped that the rules would seek to address concerns voiced by foreign and domestic companies over a clause giving nuclear plant operators the right to recourse against suppliers in the event of an accident.