The Hindu : National : Deal could help PSUs

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Monday, Aug 13, 2007
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National

Deal could help PSUs

Sujay Mehdudia

NEW DELHI: The clearance of the Indo-U.S. nuclear in the coming days is likely to open up a window of opportunities for the public sector undertaking power companies as well as the private sector to make foray into the nuclear power generation business.

After the National Thermal Power Corporation (NTPC), which is very bullish on the issue, Tata Power has also indicated its willingness to get into the business of nuclear power generation. The next to join the bandwagon could be the Reliance Energy Limited which has already allocated an investment of Rs. 60,000 crore for the power sector during the next 3 years.

India’s No.1 power generation company — NTPC — has already drawn up plans for making investments in the nuclear power generation sector during the 11th and 12th Five Year Plans as part of its grand expansion from the thermal power sector. Moving at a steady pace, it has already put in place roadmap for taking up 2000 MW worth nuclear power projects by the end of the 11th Plan. The vision document has also strived to put the company on a diversification path with plans aimed at enhancing its share in hydro power generation to 12 per cent by the end of the 12th Plan.

Officials said the recent developments in the Indo-U.S. nuclear deal had made them bullish about the whole affair. They confessed that the nuclear foray project had been put in the slow mode as the Indo-U.S. deal had previously entered a crucial phase and they did not want to provoke the situation by announcing such a major decision. “NTPC is already in the process of drawing up a roadmap for foraying into the nuclear power generation. It is hopeful to put in place 2000 MW of nuclear power facility by the end of 11th Plan and enhance this capacity substantially by the end of the 12th Plan,” a senior company official remarked.

The field unit of the company is already scanning the States for identifying sites suitable for nuclear power plants. “We are waiting for the final approval of the nuclear deal. Then we will press for necessary amendments in the Atomic Energy Act and also seek approval to launch our new venture,” the official said. On the other hand, private companies such as Tata Power and REL are waiting for the Government to make amendments in the Act to allow private players to play a role in nuclear power generation.

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