Bhel-NPCIL-Alstom JV gets go-ahead from PMO

The prime minister’s office (PMO) has given a go-ahead for the three-way joint venture between government-owned Nuclear Power Corporation of India (NPCIL), French major Alstom and electrical equipment maker Bhel.

This will be a front-ended joint venture to develop and deploy eight nuclear power turbines with know-how from Alstom using Bhel facilities at Hyderabad, Bangalore, Bhopal and Thiruvanantapuram.

Atomic energy department under prime minister’s direct charge will shortly move a note before cabinet for formal approvals to set up the three-way joint venture with NPCIL as lead partner.

All three joint venture partners will have 33.33 per cent equity in the new company with board representation for two each.

While the joint venture be formalised next month, the order for developing two nuclear power reactors with 800 mw each would be concluded in March next year. First two power projects are valued at Rs 9,000 crore.

Already, four production facilities of Bhel have begun work on two units of 800 mw each. The three-way joint venture will also ensure full transfer of technology from Alstom to Bhel over next three-five years.

“We expect to formalise the front-end jointed venture next month. Formal order for two nuclear power units would be concluded by March next year” BP Rao, CMD of Bhel, said.

Equity investment would be modest as this is a ‘three-way front-end joint venture’ with no new manufacturing capacities to be put up. First unit will be deployed at the Kakrapar nuclear power station in Rajasthan, while the second would be installed in Kerala. Eventually, eight units will be developed over next five to seven years for deployment across the country.

The three-way joint venture is part of wider game plan of Indian establishment to acquire capacity to produce nuclear power units below 1,000 mw capacities each. “Nuclear fuel supply and technology transfer agreements are under negotiation at present,” said an official close to development.

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