Home > In the Media > Jaitapur nuclear plant will cost Rs 1-lakh cr

Jaitapur nuclear plant will cost Rs 1-lakh cr

October 16, 2010 Leave a comment Go to comments

Hindu Businessline Bureau

Mumbai, Oct. 15 Nuclear Power Corporation of India’s 10,000-MW plant being set up at Jaitapur, Maharashtra, will need funding of nearly €10 billion (Rs 68,720 crore), said Dr S. K. Jain, Chairman and Managing Director, here on Wednesday.

Areva of France will supply two reactors of 1,650 MW each for the first of the three-phase project which will eventually cost over Rs 1 lakh crore. This will be NPCIL’s largest nuclear power plant and will be built over 15 years.

The land acquisition process is complete. The groundbreaking is scheduled for early 2011.

Dr Jain told reporters at the Second Indo-French Nuclear Industry Business Meet that the project would have a 70:30 debt equity ratio. As the company has cash reserves of over Rs 13,000 crore, the equity component can be comfortably met, he said.

NPCIL will, for the first time, tap the Export Credit Agency (ECA) and External Commercial Borrowing (ECB) route for raising debt. Dr Jain said talks were on with French banks which have assured debt funding for the first phase.

“The interest rate will be cheaper than ECBs. Banks such as BNP Paribas and Calyon are in a position to underwrite nearly €2 billion of debt and can borrow more for their own syndicate if needed. The exact debt funding requirement will be known when the techno commercial talks are through,” he said.

Mr J. K. Ghai, Director (Finance), NPCIL, said the project cost in the first phase would be in the region of Rs 33,000 crore. While Rs 15,000 crore will be financed through the French ECA at six per cent interest, Rs 8,000 crore will be raised overseas and Rs 10,000 crore will be equity, he said.

“Since the project is supported by the French and Indian governments, the banks are comfortable lending to us. Societe Generale, BNP Paribas, Natixix, Calyon and HSBC Bank are part of the ECA lending group,” Mr Ghai said.

Dr Jain said that the third generation, European pressurised reactor from Areva had advanced safety features whose technical specifications would be finalised by the end of the month.

According to him, NPCIL will need about 7,000 tonnes of imported uranium to operate the country’s nuclear power programme.

“Our strategy is to have lifetime supply of fuel, fuel fabrication and services of fuel enrichment facilities,” he said.

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