India Arranges $41 Billion in Funds for 10,080-Megawatt Nuclear Power Target

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--India is planning to have 10,080 megawatts (MW) of installed nuclear power generation by the end of the 12th Five-Year Plan period (2012-17). The Nuclear Power Corporation of India (NPCIL) is set to launch 16 reactors with an investment of more than $40 billion during the period.

Eight 700-MW pressurized heavy water reactors (PHWR) and eight light-water reactors (LWR) will take an investment of $41 billion, with the LWRs coming from foreign companies. The Russians will build two more at Kudankulam, with the other six being set up by General Electric (NYSE:GE) (Fairfield, Connecticut), Westinghouse Electric Corporation (Monroeville, Pennsylvania) and Areva S.A. (OTC:ARVCY) (Paris, France).

The 16 reactors are in addition to the four 700-MW PHWRs under construction by NPCIL at the Rajasthan nuclear power station and at Kakrapara in Gujarat with an investment of $4 billion.

By 2017, India is planning to have a total installed power generation capacity of 300,000 MW. Currently, the total has just passed 20,000 MW.

To meet the nuclear power funding requirements, four major companies in the public sector will pool more than $8 billion to fund the equity portion of several of the projects. NPCIL has arranged a further $7 billion in credit from foreign banks. Eighteen banks have been involved in the arrangements, with four saying that they would underwrite the entire debt funding for the projects, said S.K. Jain, who has just retired as NPCIL chairman and managing director. NPCIL can move more than $2.5 billion of its own funding. NTPC, Nalco and IOC have all agreed to bring $1.8 billion each to the funding pool.

For related information, see December 28, 2011, article - India's BHEL Develops International Alliances to Obtain Larger Nuclear Turbine Contracts.

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