The N-deal, if passed, could open up new vistas for equipment makers for nuclear power plants
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20/07/2008
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Economic Times (New Delhi)
Tapash Talukdar
WHILE the nuclear deal runs the risk of getting nuked, there exists a host of homegrown companies, which have a lot to gain from the controversial 123 Agreement. The pro-deal government has recommended a roadmap for meeting the country's energy requirement for the next 25 years and has set an ambitious target of 20,000 MWe (unit of nuclear power) by 2020 from the current 3,900 MWe. If all goes well, it will open up a sea of opportunities for various sectors involved in making equipment for nuclear power plants. India has plans to set up 15 plants over the next 20 years and so the pursuance with US to import more advanced nuclear power technology may better the standards of manufacturing for smaller players in future.
India has a total installed power generation capacity of 1,44,564.97 MW. Out of this, 64.6% capacity is achieved through thermal fuel, and hydroelectric power contributes 10.5% while nuclear energy makes up for a mere 2.9%. Nuclear power is considered to be economically competitive at competitive tariffs. It is estimated that over 400 companies could get a chance to participate in building power plants directly or indirectly.
Among them is Bangalore-based Avasarla Technologies Ltd that's gearing up to increase its production capacity multi-fold, and also readying for a possible JV with a US-based technology group. "Half of our product portfolio caters to nuclear power plants requirements. If this deal happens, we are expecting significant business orders once the government decides upon the agreement," says D Raghunath, director, Avasarla Technologies. The Rs 160-crore company has supplied coolant channel assembly, fuel transfer equipment, reactivity mechanisms and calandria