Nuclear Power Corporation of India Ltd, which accounts for about 3 per cent (4,120 Mw) of the country's power generation capacity, is the only company authorised to build nuclear power plants in the country, besides Bharatiya Nabhikiya Vidyut Nigam (Bhavini).
SK Jain, who heads NPCIL and Bhavini, tells
Business Standard about how NPCIL is best placed to take India's nuclear power ambitions forward.
What is the state of readiness at NPCIL for realising the objectives of the India-US nuclear pact? We have been having informal meetings with the vendors (GE, Areva, Westinghouse). Once the deal is through, as a power utility, we can get marching orders to deal with foreign companies and figure out the modalities of purchase (on a negotiated basis or through competitive bidding). We are also in the process of identifying 3-4 coastal sites to set up imported reactors. The report on the sites will be submitted in June this year.
What is the capacity addition you are looking at? Prime Minister Manmohan Singh had announced in August last year that it would be possible to get 40,000 Mw of power through the nuclear route in 10 years. It is too tough a target to achieve, not because we do not have the capability, but because the supply chain would be a constraint. A realistic target would be around 30,000 Mw by 2020.
How would these plants be funded? Funding projects would not be a problem as NPCIL is currently sitting on cash reserve of Rs 10,000-11,000 crore (Rs 100 to 110 billion).
We are earning four-figure net profit (Rs 1,571 crore or Rs 15.71 billion for the year ended March 2007) and we are confident we will continue this way till 2020. This means another Rs 10,000 crore (Rs 100 billion). By mobilising funds from the financial institutions, we have an investment capability of over Rs 60,000 crore (Rs 600 billion). So, we won't be needing any funding even from the government of India.
Would NPCIL be interested in partnering companies like NTPC which also have nuclear power ambitions? NPCIL has enough money. And if we are talking about expertise, we have built that over 35 years. We are able to put up and operate plants that would meet any international benchmark. Currently, only we handle nuclear fuel, which we get on a lease basis from the Department of Atomic Energy, of which we are a part. This might not be possible with other players. So some rules, guidelines and legislation would have to be made before other players can be allowed onto the playing field. The size of the programme is such that NPCIL alone can handle it.
So, you are saying the case for NTPC is weak? I am not saying the case for NTPC is weak, just saying this is not the right time for them to enter the nuclear power market.
If the case is such for NTPC, for private players like Tata Power and Reliance, there seems to be no hope right now? NTPC being a government undertaking can approach