NPCIL, Rosatom seal Kudankulam expansion deal
Tuesday, Jun 06, 2017
India’s state-run Nuclear Power Corp of India Ltd (NPCIL) and Russia’s Rosatom have signed a General Framework Agreement (GFA) and a credit protocol to build two 1,000-MW reactors at the Kudankulam NPP in southern India.

"All the formalities have been carried out now in order to finally launch the project to construct two new power units at Kudankulam using Russian technologies." said Valery Limarenko, president of Atomstroyexport (ASE), the engineering unit of Rosatom.

Limarenko and NPCIL managing director S K Sharma signed the agreements during the 18th Annual Russian-Indian Summit in St Petersburg last week.

Russian Finance Minister Anton Siluanov said that his government would be lending India US$4.2 billion to help cover the construction of the two nuclear reactors at Kudankulam. The concessional loan is to be extended at a concessionary interest rate for a period of 10 years.

The GFA agreement stipulates construction of two 1,000-MW reactors – Units 5 and 6 – at Kudankulam with the technical assistance from ASE. The Russian company will supply two VVER 1000 model of Pressurised Water Reactors (PWRs).

This is the third contract for AES. It bagged the contract to supply two units of the same category (Unit 1 and 2) for Kudankulam plant in 2008 and and wo more reactors of that (unit 3 and 4) in 2014.

NPCIL has commenced the civil works for development of unit 3 and 4 reactors adjacent to the existing two units at the Kudankulam plant. The latest expansion will increase the Kudankulam plant capacity to 6,000 MW.

Rosatom is supplying these reactors to NPCIL in line with an agreement on cooperation in atomic energy between Russian and India concluded in 2014.

According to the agreement, Rosatom will provide equipment and loans for the construction of 12 reactors in India over a 20-year period.
The Indian side agreed to identify a second site for the construction of a second Russian-designed, six-reactor NPP.

NPCIL currently operates 22 reactors with a total capacity of 6,780 MW and is building an additional 2,800 of capacity.

The Indian government has a plan to increase nuclear capacity to 60,000 MW by 2030 to reduce its dependence fossil fuels and to cut greenhouse gas emissions.

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