NPCIL-NTPC Form Joint Venture to Construct Nuclear Power Station

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Researched by Industrial Info Resources (Sugar Land, Texas)--Nuclear Power Corporation of India Limited (NPCIL) (Mumbai), India's only nuclear power producer, and NTPC Limited (BSE:532555) (New Delhi), the country's largest power producer, have signed a memorandum of understanding to incorporate a joint venture company to construct nuclear power plants in India. The memorandum of understanding was signed by the chairman and managing director of NPCIL and the chairman and managing director of NTPC. NPCIL and NTPC intend to incorporate a joint venture company, of which NPCIL will have a 51% stake and NTPC will have a 49% stake. The NPCIL-NTPC joint venture will be the first joint venture involved in nuclear power generation in India.

NPCIL has plans to build a $3 billion, 2,800-megawatt (MW) pressurized heavy water reactor (PHWR) nuclear power plant in Gorakhpur village (about 175 kilometers from Delhi) in the Fatehabad district of Haryana. This will be the state's first 4 x 700-MW nuclear power plant. According to officials of Haryana Power Generation Corporation Limited (HPGCL) (Haryana, India), the nodal agency for the project, the land acquisition officer has already started issuing notices to land owners. The site has been approved with reference to factors such as availability of land and water, and distances from populated places.

The Centre accorded approval in principle in October 2009 for setting up the plant in two phases. In the first phase, two 700-MW units will be developed. The plant will be set up over 1,000 acres and will consume about 50 tons of uranium annually. About 700 personnel will work at the plant. It will be a green project with zero emissions. The state government has assured supply of 320 cubic feet per second of water for the project, said the official. The land will be acquired by the state government around the villages of Kajalheri, Gorakhpur and Kumharia in Fatehabad. Adequate compensation and annuity will be provided to the landowners.

Pre-project activity is likely to be completed by 2011, and construction is planned to start by March 2012. The first phase of the project is scheduled for completion by 2017. NPCIL has already made arrangements for the supply of uranium to the plant. With the establishment of this plant, infrastructure in this area will also develop. When fully operational, the plant will provide a cheap and clean source of power to Haryana and the neighbouring states.

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