NEW DELHI: India and France signed yesterday a Memorandum of Understanding (MoU), potentially worth some 30 billion euros ($39 billion). It is the first commercial contract signed by India since the Congress-led United Progressive Alliance (UPA) government gave its nod to foreign companies participation in India’s atomic power program. With the deal, which ends 34 years of India’s nuclear isolation, the French company Areva is expected to supply two European Pressurized Reactors (EPR) of 1,650 MW each, which could be worth at least 8 billion euros ($10.4 billion). The two nuclear reactors are likely to be set up at Jaitapur in Maharashtra. The agreement is understood to have the provision that France will supply four additional EPRs at a later date.
Nuclear Power Corporation of India Limited (NPCIL) Chairman S.K. Jain and Areva Chief Executive Anne Lauvergeon signed the MOU.
It was inked in the presence of visiting French Commerce Minister Anne-Marie Idrac, Minister of State in the Prime Minister’s Office Prithviraj Chavan and Minister of State for Commerce and Power Jairam Ramesh.
Expressing keenness to strengthen nuclear ties with India, the French minister hoped that a commercial agreement would be signed later in the year. “We are interested in deepening this partnership. AREVA is committed to developing India’s nuclear capacity and equipment,” Lauvergeon said. “We would be seriously looking at common investments in mines for supply of fuel for the reactors,” Lauvergeon said.
India will focus on the nuclear sector to boost power generation, Chavan said. “The government will soon announce more nuclear parks in other parts of the country. Some locations have already been identified. The Cabinet is looking into it,” Chavan said.
Other parks will also have a capacity of six to eight reactors, such as Jaitapur, Chavan said. India expects other countries also to participate in setting up reactors here, he said.
