PTI reported that state owned Oil and Natural Gas Corporation plans to take up to 49% stake in one of the five proposed nuclear power plants of Nuclear Power Corp of India Limited.
An ONGC official said that "We are in discussions with NPCIL for incorporating a JV for setting up a nuclear power plant. NPCIL will have a minimum of 51% stake in the JV while ONGC would have a maximum of 49%."
The JV would build, own and operate nuclear power plants for energy generation at mutually agreed locations. It would be managed by a Board of Directors made up of nominees from both the companies.
NPCIL intends to set up five nuclear energy parks each with a total capacity of up to 10,000 MW at a single location. The sites identified for these energy parks are Kudankulam in Tamil Nadu, Jaitapur in Maharashtra, Mithi Virdi in Gujarat, Kowada in Andhra Pradesh and Haripur in West Bengal with imported reactors.
Besides this, 700 MW indigenous PHWR (Pressurized heavy water reactor) technology is planned for Kumharia in Haryana (2800 MW), Bargi in Madhya Pradesh (1400 MW) and Markandi in Orissa (6000 MW).
The official said that "Some of the sites are under review in view of the local resistance to such projects. We are yet to freeze a location for the power plant."
Nuclear power being highly capital intensive sector requires about INR 10 crore per MW and projects are generally financed in 70:30 debt equity ratio. For a 2000 MW project, ONGC's equity would come to INR 2,940 crore spread over 5 to 6 years.
For its planned projects, NPCIL has already signed joint venture agreement with state power utility NTPC, oil refiner Indian Oil Corporation and aluminum manufacturer NALCO. It is also in discussions with Bharat Petroleum and Steel Authority of India Limited.
The ONGC official said that "With guarantee of fuel supply and proven technology, nuclear power will be India's option for mitigating the twin problems of depleting oil resources world over with high oil prices and Green House Gas emissions from fossil fuels. In contrast to wind or solar energy, the land footprint of nuclear plant is very small."
Current tariffs for the nuclear power assure post tax return on equity at the rate of 14% even at normative plant load factor or capacity utilization of 68.5%.
While NPCIL has been assigned the responsibility for construction and operation of nuclear power plants with LWR and indigenously developed Pressurized Heavy Water Reactor, Bhartiya Nabhikiya Vidyut Nigam is setting up Fast Breeder reactors with indigenous technology.
NPCIL currently has 20 reactors that can generate 4,780 MW, or 2.7% of India's total installed capacity of 176,990 MW. The government plans to increase its nuclear capacity to 60 gigawatts by 2030.
(Sourced from PTI)
