Thursday, May 24, 2018

A capacity expansion is planned by setting up nuclear power reactors at various green field sites. On completion of the green field site projects which have been accorded administrative approval and financial sanction, the installed nuclear power capacity would increase by 7000 MW by the year 2031.

Green field sites, accorded administrative approval and financial sanction:

  1. Gorakhpur, Haryana: 4 x 700 MW
  2. Chutka, Madhya Pradesh: 2 x 700 MW
  3. Mahi Banswara, Rajasthan: 4 x 700 MW

Excavation work at the Gorakhpur, Haryana site for setting up GHAVP-1&2 has already commenced. Pre-project activities including land acquisition, obtaining statutory clearances, site investigations and site infrastructure development work are under progress at these sites.

Green field sites, accorded ‘In-Principle’ approval:

  1. Jaitapur, Maharashtra: 6 x 1650 MW
  2. Kovvada, Andhra Pradesh: 6 x 1208 MW
  3. Bhimpur, Madhya Pradesh: 4 x 700 MW
  4. Chhaya Mithi Virdi, Gujarat: 6 x 1000 MW
  5. Haripur, West Bengal: 6 x 1000 MW

Pre-project activities at these sites are at various stages.

With the completion of the under construction and sanctioned projects, the total nuclear power installed capacity in the country will reach 22,480 MW by the year 2031. Further, on completion of the nuclear power projects planned to be setup at the ‘In Principle’ approved green field sites, a nuclear power capacity of about 31,948 MW will be added progressively.

The Government has taken several enabling steps to increase the nuclear power capacity, based both on indigenous technologies and with foreign technical cooperation and to provide adequate quantity of fuel. These include:

  1. Resolution of issues related to Civil Liability for Nuclear Damage (CLND) Act, 2010.
  2. Creation of Indian Nuclear Insurance Pool (INIP).
  3. Accord of administrative approval and financial sanction of - ten indigenous 700 MW Pressurized Heavy Water Reactors (PHWRs) to be set up in fleet mode. Of these, eight are to be setup at green field sites.
  4. Amendment of the Atomic Energy Act to enable Joint Ventures of Public Sector Companies to set up nuclear power projects.
  5. Entering into enabling agreements with foreign countries for nuclear power cooperation including supply of fuel.

Financials

Nuclear power reactors to be set up are funded by a mix of debt and equity. Generally, the debt to equity ratio is about 70:30. The equity requirements are met from indigenous sources comprising of investments by Nuclear Power Corporation of India Limited (NPCIL) and domestic budgetary support. The debt is sourced from both domestic and external borrowings.

In respect of reactors to be set up in technical cooperation with foreign countries, debt is planned to be sourced from either the vendor country as credit or from lending agencies. The equity requirements of future reactors is planned to be met with the internal resources, Government’s budgetary support and contribution of Joint Venture (JV) partners.