India, Russia finalise agreement on units 5, 6 at Kudankulam

Scaling up cooperation in the atomic energy sector, India and Russia have finalised a general framework agreement and credit protocol for setting up units five and six at the Kudankulam nuclear plant.

The formal announcement of the pact and the credit protocol is likely to be made after bilateral talks between Prime Minister Narendra Modi and Russian President Vladimir Putin tomorrow in Goa on the sidelines of BRICS Summit.

“Russia and India finalised ‘General Framework Agreement’ and a ‘Credit Protocol’ for Units 5 and 6 and are planning to announce it in Goa,” Russian sources said. They said the two countries are also planning a ceremony of “first pour” of concrete to the foundation of Unit 3 and 4 and a ceremony of inauguration of Unit 2 of the Kudankulam nuclear plant.

Both ceremonies will witness the participation of Putin and Modi as well as Kudankulam engineers in Tamil Nadu via video-conference, they added. On August 10, the first unit of the Kudankulam Nuclear was dedicated to the nation jointly by Modi and Putin who had participated at the ceremony from Moscow via video-conferencing.

The Kudankulam 1 has been jointly built by the Nuclear Power Corporation of India and Russia’s Rosatom and it had started generating electricity in 2013. The agreement for the project was inked by former Prime Minister Rajiv Gandhi and then Soviet Union President Mikhail Gorbachev in 1988 but actual work on the ground started only in 1997.

The unit 1 and 2 of Kudankulam plant were built at a cost of Rs 20,962 crore. A major share of power generated in the plant goes to Tamil Nadu, followed by Karnataka, Kerala and Puducherry. Each of the units has a capacity to generate 1,000 MW of power. 

NPCIL's generation up due to additional fuel supplies

NPCIL has drawn up a comprehensive road map for the XII and XIII Plan periods, which envisages total outlay of about Rs 2,50,000 crore.

Nuclear Power Corporation of India Ltd (NPCIL) has managed to increase its power generation to about 32,000 million units during 2011-12, up from 26,000 mu last year.

This increased generation was possible due to additional fuel supplies from international markets and also higher production of uranium within the country. NPCIL revenues are likely to go up from Rs 5,000 crore last year to over Rs 8,000 crore this fiscal, Dr. S.K. Jain, Chairman and Managing Director, said.

Safety costs

Addressing a press conference here at at the Nuclear Fuel Complex on Monday, Dr Jain said, “The stage is now set for major expansion of nuclear power generation in the country. After the Fukoshima nuclear disaster, we had to revisit all our plants before taking up expansion and new projects.”

“This has meant an investment of about Rs 150 crore and possibly delay of nuclear power generation programme by about 15 to 18 months. But being a Government entity, we have to ensure safety before we take up anything new,” he said.

Road ahead

NPCIL has drawn up a comprehensive road map for the XII and XIII Plan periods, which envisages total outlay of about Rs 2,50,000 crore.

“These include four more 700 MW projects with an investment of Rs 20,000 crore. Work on the Kudankulam project is also going on round-the-clock and we are keen to take it up at the earliest,” he said.

It is proposed to take up 8 units of 700 MW and eight more units of 1,000 MW each as a part of expansion plan. Referring to uranium mining in Andhra Pradesh, he said that this has added to about 25 per cent of the current supplies.

Indigenisation

Dr Jain said that India has the potential to become a supplier of nuclear sub-assemblies to the world as it makes it possible to produce similar equipment for about 25 per cent less compared to any European manufacturer.

Mentioning about dependence on global suppliers for nuclear power plants, Dr Jain said in 2008 a major supplier stated they would not be able to supply material by fourth quarter of 2012. This provoked us to take up indigenisation. Results are there for all of us to see in the form of NFC producing critical tubes for steam generators.

Economic Survey: Nuclear power capacity failed to rise

Even though the generation of nuclear power increased by 33 percent this fiscal, no capacity was added against a target of 2,000 MW, the Economic Survey said on Thursday.

According to the survey tabled in the parliament by Finance Minister Pranab Mukherjee, the Eleventh Five Year Plan (2007-12) initially envisaged a capacity addition of 78,700 MW, of which 75.8 percent was thermal, 19.9 percent was hydro, and 4.3 percent was nuclear.

"At the time of the mid-term appraisal of the Eleventh Plan, the target was revised to 62,374 MW with thermal, hydro, and nuclear segments contributing 50,757 MW, 8,237 MW and 3,380 MW respectively," the survey noted.

"Capacity addition of 46,669.7 MW has so far been achieved until Jan 15, 2012. Projects with a capacity of 7,645 MW are under construction for commissioning during the remaining period. Capacity addition during the Eleventh Plan is, therefore, expected to be about 50,000-52,000 MW.

The anti-Kudankulam Nuclear Power Project (KNPP) agitation has spooked the addition of 2,000 MW new atomic power capacity addition this year.

Atomic power plant operator Nuclear Power Corporation of India Ltd (NPCIL) is building two 1,000 MW reactors with Russian technology at Kudankulam in Tirunelveli district, around 650 km from here.

Villagers who have safety concerns have been protesting against the plant. They are also concerned about the long-term impact of the nuclear plant on the population.

Their agitation, spearheaded by People's Movement Against Nuclear Energy, has put a stop to the project work, delaying the commissioning of the first unit by several months.

In September, the Tamil Nadu cabinet passed a resolution asking the central government to stop all project related work till the fears of the locals about the plant were allayed. Speaking to IANS, a senior NPCIL official preferring anonymity said: "The 2,000 MW capacity addition target is only from the Kudankulam project as other projects of NPCIL are under construction."

On the status of KNPP he said: "Only maintenance activity of the first reactor is being done with skeletal staff. Several truck loads of components have been unloaded at the employee township as the vehicles were not allowed to go inside the project complex."

India eyes 63,000 MW nuclear capacity by 2032

The country plans to have a nuclear power generation capacity of 63,000 MW in the next 20 years as atomic power is advantageous in terms of transportation and storage, the Power Minister, Mr Sushilkumar Shinde, said today.

“India plans to have a total installed nuclear capacity of 63,000 MW by the year 2032 both by indigenous technology and imported reactors as additionalities,” he said while addressing a seminar at India International Nuclear Symposium.

“Nuclear technology has several distinct advantages — it is compact and highly manageable in terms of handling, transportation and storage of the fuel,” he said, adding that it is greener than all other technologies of power generation.

Nuclear power generation falls under the jurisdiction of the Department of Atomic Energy, a wing of the Ministry of Science and Technology.

International cooperation, including Indo-US nuclear deal, on civil nuclear collaboration is a significant move for the expansion of India’s nuclear power programme.

Highlighting the challenges in conventional power generation, Mr Shinde said: “Thermal technologies have the problems of greenhouse gas emissions, fly-ash and handling, transportation, storage problems of large quantities of fuel as well as availability of coal.”

Even though hydro power is considered as a cleaner source of energy, hydro technology has problems of submergence and geological surprises. Wind and solar power technologies are seriously limited by site-specific and season-specific nature of their availability, he added.

At present, 20 nuclear power reactors are in operation and seven reactors are under construction, including a 500 MWe fast breeder reactor. Total nuclear capacity of the country stands at about 4,800 MW.

'Nuclear energy remains a very attractive option'

Bernard Bigot, head of CEA, the atomic and alternative energy body for France, and also the head of the country’s Atomic Energy Commission, says nuclear power is a sensible option and safety a priority. Edited excerpts of a talk with Sanjay Jog:

The Fukushima accident has forced nuclear countries to review safety applications and carry out necessary modifications. What is your view on this?

We welcome this review. Nuclear safety is of utmost importance and we should always take into account the feedback experience to improve safety in the most efficient way. Various initiatives have been launched, at international and national levels. In the case of France, the French Safety Authority, ASN, have requested from the operators complementary safety assessments for all existing plants and facilities, as well as for those under construction. The ASN report will be made available to the public at the beginning of next year. The initial assessment from operators is already available to the public.

Germany, an importer of energy, has decided to remove nuclear power from its energy mix in the near future, while other countries have confirmed their intention to continue down the nuclear road. Has Fukushima impacted the nuclear renaissance?

Undoubtedly, Fukushima has slowed the construction pace of new plants. However, the context remains the same — soaring energy demand, depletion of natural resources, global warming. To face these growing challenges, nuclear energy remains a very attractive energy option, provided safety is the top priority, as reminded by the Fukushima accident.

AREVA (of France) is negotiating with Nuclear Power Corporation for supply of two evolutionary pressurised reactors (EPRs) of 1,650 Mw for the Jaitapur project. Critics are raising objections against EPR safety.

The EPR reactor, an AREVA product, is based on an evolutionary technology. It is derived from well tested and well proven technologies, namely the French N4 and German Konvoi reactors, which have been operating successfully for many years in France and Germany. The EPR is derived from these two reactor concepts, with enhanced safety measures, to integrate the feedback experience of the Three Misle Island and Chernobyl accidents. The EPR is the most advanced design as far as safety is concerned.

After Fukushima, AREVA has revisited the safety applications of EPRs as directed by the French regulator. What are the major modifications suggested and implemented by AREVA?

No major modification was suggested by the reviewers. The EPR was clearly conceived to avoid the occurrence of any accident. As a result, the EPR reactor contains state of the art safety measures. The French Safety Authority has asked for complementary safety assessments. This process is ongoing. We are awaiting the final results of these assessments, which should be known very soon, and we shall share these with the Indian authorities.

What is your view on the recently released civil nuclear liability rules by the Government of India?

We are planning to work within the framework of these rules. Nevertheless, we will have to wait for final version. We understand that they have to be placed before the Indian parliament.

What is the present status of the protocol signed between CEA and the Atomic Energy Commission of India in 2002?

The aim of the Protocol signed in 2002 between CEA and AEC, which was renewed in 2007 between CEA and Department of Atomic Energy, was to establish a structure for the coordination of our bilateral cooperation programs. After signing of the 2008 inter-governmental agreement, this memorandum of understanding was replaced by a framework agreement signed between CEA and DAE during the French president’s visit to India in 2010. The Joint Coordinated Committee set up by this agreement offers the possibility to review annually our cooperation, with the aim of giving it more impetus.

Australia PM backs uranium sales to India

Australian Prime Minister Julia Gillard is pushing to revoke a ban on selling uranium to India, potentially widening access to the scarce resource for India’s ambitious nuclear energy programme and untying knots in bilateral relations.

Gillard made her thoughts public in an article published Tuesday in the Sydney Morning Herald ahead of next month’s meeting of her Labor Party. She urged her colleagues to drop their support for the ban, describing India as a close partner.

“I believe the time has come for the Labor Party to change this position. Selling uranium to India will be good for the Australian economy and good for jobs,” Gillard told reporters. “This will be one way we can take another step forward in our relationship with India.”

India, the second fastest growing of the world’s major economies, is heavily dependent on fuel imports and is seeking to diversify its energy basket to power economic growth. It aims to upgrade its nuclear power generation capacity to 20,000 megawatts (MW) by 2020, from 5,000MW now.

Australia has nearly 40% of the world’s known uranium reserves, but supplies only 19% of the world market. It has no nuclear power stations.

India’s foreign minister S.M. Krishna welcomed the initiative. Australia has recognized “our growing energy needs, our impeccable non-proliferation record, and the strategic partnership between our two countries”, he said in a statement. “We attach importance to our relations with Australia, which are growing across the board. Energy is one of the key areas of bilateral cooperation.” Bilateral trade between India and Australia is worth about $20 billion (around Rs.1 trillion) a year.

Gillard’s Labor Party, on coming to power in 2007, suspended talks the previous administration was having with India on the sale of uranium, the main source of fuel in a nuclear reactor. Its main objection was that India was not a signatory to the Nuclear Non-Proliferation Treaty that forbids countries from sharing or trading nuclear technology and material with non-signatory states.

In 2008, India concluded a landmark civil nuclear energy deal with the US that enables it to acquire sensitive technology and source atomic power plants from international vendors.

Under the terms of the deal, India agreed to separate its civilian and military programmes, and to use the technology and resources acquired from abroad only for civilian purposes. Following that, India has entered pacts with many countries, including Canada and the Central Asian republic of Kazakhstan to source uranium for its civil nuclear programme.

Australia supported the US-India nuclear agreement as a member of the Nuclear Supplier’s Group, but had continued to refuse to sell uranium to India. “It is time for Labor to modernize our platform and enable us to strengthen our connection with dynamic, democratic India,” Gillard wrote in her article.

Australia has four mines—BHP Billiton Ltd’s Olympic Dam, potentially the world’s biggest; Energy Resources of Australia Ltd’s Ranger mine; the Beverly mine, owned by US company General Atomics; and Honeymoon mines, owned by Uranium One and Mitsui and Co. Ltd

C.U. Bhaskar, a former head of the National Maritime Foundation think-tank in New Delhi, said the nuclear issue has been a “knot in bilateral relations” between India and Australia.

“It had become a bipolar issue with the John Howard government in talks for the sale of uranium to India and the Labor Party opposed to it... Now Australia seems to be in the middle of a holistic review of its policies vis-a-vis Asia and India in particular,” he said.

The Labor Party will debate lifting the ban at its conference next month. The move should easily pass with support from Labor’s dominant Right faction. The policy does not need to go to Parliament for approval, but the conservative opposition also supports uranium sales to India.

Maharashtra mulls annuity payments for Jaitapur-affected families

Though the central government’s land acquisition and rehabilitation Bill is yet to be passed by Parliament, the Maharashtra government has proposed to incorporate a provision relating to annuity payment to families affected by the Jaitapur nuclear power project in the state.

The government and the Nuclear Power Corporation (NPC) are currently exploring several options on the ratio of cheque payment and minimum annuity of Rs 2,000 per month per family. NPC has agreed to pay a compensation of Rs 25 lakh per hectare each to the families for 938 hectares of land. The state cabinet is expected to soon give its clearance for NPC’s revised resettlement and rehabilitation (R&R) measure, comprising ex-gratia and annuity payments, and expenses for corporate social responsibility. The package is expected to be in the range of Rs 400-600 crore.

 “Of the Rs 25 lakh per hectare, 50 per cent may be paid by cheques and the rest through annuity payment. The ratio could be 70:30 or 80:20. This is currently being discussed with the state government. NPC will pay Rs 2,000 per month per family as annuity for 20 years, with appropriate index for inflation as envisaged in the new land acquisition Bill. This will be reviewed every three years, so that the monthly amount remains Rs 2,000 or it will increase,” an NPC official, who preferred to be anonymous, told Business Standard.

The official said NPC would negotiate with the insurance company on the terms for monthly annuity payment to the affected families.

According to the official, the ex-gratia payment of Rs 25 lakh per hectare would be irrespective of the type of land and where the land is situated. “According to the state government’s resettlement and rehabilitation award, NPC was entitled to pay Rs 53,000-Rs 1,06,000 per hectare for barren land, Rs 1,03,000-Rs 4,23,000 per hectare for fallow land and Rs 1,81,000-Rs ,33,000 per hectare for kharif land. However, the affected families will now get an ex-gratia payment of Rs 25 lakh per hectare,” he said.

A senior state government official clarified that the compensation of Rs 25 lakh per hectare was considered only for the Jaitapur nuclear power project and not for other power and infrastructure projects.

“The annuity clause is being considered for the first time in case of the Jaitapur project. This will benefit the affected families, as they will continue to get monthly annuity payment instead of receiving the entire compensation at one go.”

Moreover, NPC would spend Rs 2 crore each for improving civic amenities in four project-affected villages and it would also provide Rs 25 lakh annually for the maintenance of these amenities. The state-run company has agreed to increase this amount by 10 per cent after every three years. NPC would provide jobs to one person from each affected households on fulfiling the skill requirements, or instead pay Rs 5 lakh as a one-time compensation.

The NPC official said the company would provide training facility for starting own business to a member of PAF. The company would pay rehabilitation grant equivalent to 750 days of minimum agricultural wages to PAFs who become landless.

Australia may Allow Uranium Export to India

MELBOURNE In a bid to strengthen bilateral ties, Australian government could review and lift the long standing ban on uranium export to India later this year,a media report said on Thursday. Later this year, the (Julia) Gillard government is likely to take two very big decisions affecting relations with the US and India. It will provide much greater access for US military forces to northern Australia. This could ultimately lead to US ships being based in Australia. And it will likely lift the ban on selling Australian uranium to India. Both decisions should be seen against the backdrop of China, The Australian said.

Panel to study marine ecology, bio-diversity around 9,900-MW nuclear power park at Jaitapur

 In a bid to allay concerns over the impact of 9,900-MW nuclear power park at Jaitapur, Nuclear Power Corporation of India has set up a committee to undertake comprehensive studies on marine ecology and bio-diversity in the 10 kilometre area around the site. 

This was one of the conditions of the environmental clearance given to the project in November last year. The move to set up this committee took on a level of urgency after environment minister Jairam Ramesh's interaction at TISS last week. At the interaction, Ramesh was informed that field survey by TISS revealed that a large number of fishermen would be adversely affected and the local ecology would be devastated by the nuclear park. 

The committee will be headed by A Rahmani of the Bombay Natural History Society, and will be a co-operative effort of the BNHS, College of Fisheries, Ratnagiri, Central Marine Fisheries Research Institute, Mumbai, Central Institute of Fisheries Education, Mumbai and College of Forestory, Dalpoli University, Ratnagiri. The NPCIL study will be at a cost of Rs 5.86 crore and is expected to be completed within a year. 

A comprehensive marine and bio-diversity management plan will also be prepared by the committee. It is in the process of selecting a person from the fields of social sciences and environment to serve as a member in the advisory committee to NPCIL Board. During his visit to TISS, Ramesh had a 75-minute interaction with students protesting the decision to set up a nuclear park at Jaitapur. 

The objections ranged from faulty public hearing, to health impacts as seen in the uranium mines in Jadugoda, to the site being located in a seismic zone. This is not the first time that TISS has questioned the efficacy of the project. Last year, an impact assessment report by TISS, 'Perception Matter- People's Report-Social Impact Assessment of Jaitapur Madban Nuclear Power Plant' criticised the Jaitapur project. 

It suggested the project will have a "huge negative impact on social and environment development" as it is sitting on a high to moderate severity earthquake zone. Following his interaction at TISS, Ramesh had written to NPCIL chairman SK Jain suggesting that the company needed to step its outreach programme. 

"I think NPCIL/department of atomic energy need to improve their public communication. I promised the students that I would request Chairman DAE/Chairman NPCIL to walk across to the TISS campus for an interaction. Ideological objections we cannot counter easily but wrong facts and misplaced perceptions can certainly be countered, " Ramesh wrote. The NPCIL is stepping up its outreach programme. As a first step, NPCIL will be be meeting with students at TISS in June. 

"We would also like to take a group of students with faculty to our nuclear power station at Tarapur, providing them with an opportunity to see for themselves the working of a nuclear power plant," Surinder Thakur of the NPCIL wrote to TISS director S Parasuraman. In a communication to Ramesh, Jain explained that this would not be the first time that an effort to reach out to TISS is being made. 

"We would like to inform you that we had been in regular interaction with TISS. We have again recently contacted Professor Parasuraman and Professor Kashyap of TISS in this regard. Let me assure you that we will put all our efforts in sharing the factual position with all the faculties and students," Jain said.

Larsen & Toubro sees $1.5-billion annual business in nuclear power by 2015

Infrastructure major Larsen & Toubro said it sees a $1.5-billion (Rs 6,690 crore) annual business opportunity from nuclear power in another three to five years, despite the recent accident and sequel at Fukushima in Japan.

The company expects a major part of the growth in this business to come from nuclear power producers outside India, in the US, Britain and France. "A number of reactors in these countries would go for replacements of some of the parts and upgrades. That would be an opportunity L&T will be looking at," said M V Kotwal, president-heavy engineering.As a part of its heavy engineering division, the company manufactures vessels for pressurised heavy water reactors, fast breeder reactors, steam generator assemblies, heat transport systems and other critical equipment. The company is also engaged in engineering, procurement and construction of nuclear power plants.

Currently, the nuclear business contributes three per cent of its heavy engineering business, but this can go up to 15 per cent in another five years. Kotwal noted safety standards of nuclear plants across the world were being reviewed after the Fukushima disaster. "There has been a pause in orders from outside India in the short term. But in the long term, we see no impact," he said.

L&T's high-grade metal forging foundry in Hazira, to be commissioned early next year, will contribute to the plans. The company hopes to upgrade it to international standards by 2013-14 and then look at high-grade forgings for nuclear power plants. Initially, the unit will look at forgings for the hydrocarbons business, rolls for steel plants and turbine rotors for power plants.

"We have already commissioned the furnace at the unit and will start work by the second quarter of next year," said Kotwal. The forging unit is being set up with a planned investment of Rs 2,000 crore and it has already invested Rs 1,500 crore in the first phase. The orders for this business are expected to come from obroad. It already exports 60 per cent of its forgings to 40 countries.

L&T has aimed to double its revenues in the next four to five years and has set similar targets for the heavy engineering business. "We are seeing improvement. Orders which have been pending have started reviving, especially in the hydrocarbons segment on the refining side," said Kotwal.

He also said activity in the exploration of the oil-rich tar sands in Canada (Alberta province) had revived after hit by a slowdown. "If they come up, we can see some orders next year and the year after," said Kotwal.

NPCIL tests confidence in world’s biggest nuclear plant - Firm plans to raise Rs 30 bn this year through bonds and loans

Nuclear Power Corp. of India Ltd.(NPCIL) will proceed with its first foreign bond sale to build the world’s largest reactor complex, even as Japan battles to stop radiation spewing from a damaged plant.

India’s sole atomic energy firm plans to raise Rs. 3,000 crore this year through a mix of bonds and loans, locally and overseas, finance director Jagdeep Ghai said in an interview last week, without revealing more.

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 3,000 crore this year through a mix of bonds and loans, locally and overseas, finance director Jagdeep Ghai said in an interview last week, without revealing more.

The extra yield investors demand to hold its five-year rupee debt over government notes has fallen 38 basis points (bps) to 136 from a two-year high on 21 March after Japan averted a meltdown and Kazakhstan promised India 2,100 tonnes of uranium by 2014. A basis point is one-hundredth of a percentage point.

“NPCIL should allow concerns over safety to settle down before planning a bond issuance,” said London-based Raj Kothari, a fixed-income trader at Sun Global Investments Ltd. “If it hits the market after a couple of quarters, it should get a good reception.”

Yield spreads on the Mumbai-based state company’s debt touched 174 points last month, the widest since February 2009, after an 11 March tsunami that followed a 9-magnitude earthquake knocked out cooling systems at Tokyo Electric Power Co. Inc.’s (Tepco) Fukushima Daiichi nuclear plant, causing the worst nuclear disaster since Chernobyl. Tepco’s relative yield has surged 24-fold since to 273 points from 11.5 before the temblor.

The relative yield on China National Nuclear Corp.’s 4.9% yuan-denominated notes due July 2019 climbed 5 bps since 11 March to 201 on Monday,Chinabond prices show. The spread on similar-maturity 4.375%, euro-denominated debt sold by Areva SA, the largest provider of nuclear equipment and services, widened 31 points to 164 on Monday, BNP Paribas SA prices show.

Indian companies have issued $3.5 billion (R

s.

 15,645 crore) of bonds overseas in 2011, compared with $2.3 billion in the same period last year, as they sought cheaper funding after the central bank raised the benchmark interest rate eight times since March 2010 to 6.75%.

The average yield for Indian dollar debt has fallen 8 bps in the past month to 5.1%, according to HSBC Holdings Plc indexes. India’s nuclear power company should offer a coupon of 4-5% to draw investors, said Kothari.

Suppliers including General Electric Co. and Areva are looking at contracts in India after a civilian nuclear treaty with the US in 2005 helped lift international restrictions imposed nearly four decades ago when the country tested its first atomic bomb. Prime Minister Manmohan Singh’s government won access to fuel and technology in September 2008 from the Nuclear Suppliers Group on a proposal made by former US president George W. Bush.

“Our board approved overseas borrowing in 2008, when people didn’t care much for us,” said NPCIL’s Ghai. “Things have changed now after the deal with the US and people outside are taking note of India’s nuclear energy programme,” he added.

India and China, undeterred by the Fukushima accident, are betting on nuclear power in their quest for alternative energy sources amid rising crude oil and coal prices.

Opposition to some of the Indian generator’s projects from anti-nuclear activists and villagers may damp appetite for the bonds, and some investors may demand a higher yield to compensate for the risks, said Pierre Faddoul, a Singapore-based credit analyst at Aberdeen Asset Management Plc.

“It will come down to pricing at the end of the day,” Faddoul said in a phone interview on Monday. “A good discount would be required to compensate the negative headwinds coming from Japan. It could stretch from a handful to maybe 100 bps.”

Mango farmers and fishermen are opposing what would be the world’s largest nuclear power plant near Jaitapur on the western coast of India, arguing that hot water discharged from the reactors poses a risk to prawns, mackerels and king fish that are exported to markets including Europe, Thailand and Japan. One person was killed on Monday as protests turned violent.

India plans to spend $175 billion by 2030 on nuclear generation, according to estimates by the US-India Business Council, while China was constructing 27 reactors as of 1 April, according to the website of the World Nuclear Association.

The two Asian nations plan to boost their share of global atomic power sevenfold to 30% by 2030 to meet demand and emission goals, according to securities and research firm Sanford C. Bernstein and Co. Inc.

India plans to increase its nuclear capacity 13-fold to 60 gigawatt (Gw) by 2030, according to the nation’s Planning Commission, while China is planning a sixfold expansion to 70 Gw in nine years, according to the National Development and Reform Commission.

Rupee bonds, with a 0.7% drop this month, are the worst performers among local-currency debt in Asia outside Japan, HSBC indexes show.

The yield on the most-traded 8.08% bond due August 2022 slipped 1 bp to 8.24% as of 11.32am in Mumbai, after reaching the highest level in two months on Monday. The rate has risen 16 bps this month, the most since February 2010. The rupee slid 0.7% to 44.63 a dollar.

Work related to developing 10,000-Mw Jaitapur nuclear power project in Maharashtra would be carried out: Ramesh

Despite the Fukushima nuclear crisis, the government has said the work related to developing the 10,000-Mw Jaitapur nuclear power project in Maharashtra would be carried out.“As of now, Jaitapur stays on. My ministry had already given a conditional environment clearance to the project on November 28, 2010. The Nuclear Power Corporation (NPC) is currently holding negotiations with Areva, the supplier of reactors to the project,” said Union Environment Minister Jairam Ramesh.Ramesh, however, said the safety measures at the project site would have to be strengthened. “I must say Fukushima is a wake-up call. India can draw lessons from it. Therefore, safety applications at the Jaitapur nuclear project comprising six reactors should not be interlinked but separate.” He added the Ministry of Environment and Forests was not the agency to deal with the issue of nuclear safety, and the Atomic Energy Regulatory Board took care of such issues. Ramesh said his ministry had set up a committee to review the impact of all coastal projects, including nuclear projects, on the environment. This, he said, would help in dealing with environmental crises.

India could not afford to neglect nuclear capacity addition, Ramesh said. “Currently, nuclear power is just 3 per cent of the country's installed capacity. This would be increased to 6 per cent by 2020 and to 13 per cent by 2030. Nuclear is the best option,” he said.

Ramesh said the Jaitapur project could not be compared to the Posco project in Orissa, since it was not forest area. Unlike the Posco project, in which he had received resolutions from two Gram Sabhas, no such resolutions had come from Gram Sabhas on the Jaitapur project site.

Mahrashtra Chief Minister, Prithviraj Chavan, who met Ramesh earlier in the day to discuss various infrastructure projects in Maharashtra, said he had visited the project site and met villagers. He had also interacted with experts in Mumbai and discussed various issues pertaining to the project. “I have already clarified that the Jaitapur project will not have any major impact on fisheries,” he said.

The statements by Ramesh and Chavan follow the Shiv Sena's agitations against the project last week.

Nuclear Power Corporation's proposed project in Gujarat hits hurdle

The narrow, bumpy roads leading to Jasapara and Mithi Virdi villages in Gujarat’s Saurashtra region are being closely guarded by farmers.

The villagers are constantly checking every passing car and are on the lookout for central government officials who often come to survey the proposed nuclear power plant on their agricultural land.f this was not enough to make the message loud and clear to the Union government that the farmers are not willing to give up their land for a nuclear plant in their area, the farmers have also painted slogans on the walls of their houses, warning the government not to play “dirty games” with their lands.

The farmers of the four villages — Jasapara, Mithi Virdi, Mandwa and Khadarpara — say they check all the vehicles seen around the villages because the surveyors of the Union government, who used to come earlier, never revealed the purpose of their visit. After a series of meetings with the heads of nearby villages, the farmers have unanimously decided not to allow any surveyor in the area.

State-run Nuclear Power Corporation proposes to set up the plant.

Using white and blue colours, the students of the village school have painted ‘Dirty games won’t work, plant of death won’t work’. The recent nuclear crisis in Japan’s Fukushima plant following a devastating earthquake and tsunami has added to the problems for the government as the villagers have started comparing it with the 2001 Gujarat earthquake when several villages were destroyed.

“Earlier we were only scared for our land but now we are also scared for our lives. Everyone has to die one day but we won’t allow the nuclear power plant which will threaten the lives of our children for several years. Each one of us has seen on television what happened in Japan,” said Shaktisinh Gohil, the head of the Jasapara village, which will lose land for the project.

The four villages, which may lose 777 hectares of land for the power plant, have over 8,000 hectares of agricultural land.

“There is so much greenery in this part of Gujarat that it is often called the Kashmir of the state. Why can’t the government take non-agricultural land? Why does it want our agricultural land?” asks Gohil.

Although central government officials have invited the villagers to talk about the proposed plant in their area, the farmers of Jasapara, Mithi Virdi, Mandwa and Khadarpara villages have boycotted the meetings thrice.

“We might eat dal and bajre ki roti in our homes but we are not fools. What is the guarantee there would not be a repeat of the 2001 earthquake in Bhuj? We still have cracks on walls because of the impact of the earthquake. We have decided that we will neither allow any such nuclear power plant in the entire Saurashtra region nor anywhere else in Gujarat,” said Bhupendre Singh, the Son of Mandwa village.

Kudankulam power to hit grid in September

The wait is, finally, getting over. The first unit (of 1,000 MW) of the Kudankulam nuclear power project will be commissioned in June and power from the project will hit the grid in September.

From what sources say it looks like it is final, this time. For nearly two years now, officials have been saying that the project “is expected to be commissioned” at such-and-such month. But the revised target would always come with caveats and would never be met.

This time around it does not look like another false call because sources say that “everything is in place”.

The turbine has been erected, the steam-generator is at the site. The setting up of the reactor, a job that the Russian equipment supplier, Atomstroyexport, is doing by itself, is on track.

This is good news (mainly) for Tamil Nadu — a State that has been reeling under a peak power shortage of 2,000 MW for a couple of years now.

Tamil Nadu, being the host State, will get (a higher share of) 462.5 MW of the first unit (and as much when the second unit of 1,000 MW is also synchronised to the grid.)

The first unit of the Rs 13,000-crore project was originally scheduled to have begun supplying electricity in December 2007.

Maha govt, NPC discuss safety concerns at Jaitapur, Tarapur

In the wake of the Japan nuclear disaster, the Maharashtra government held a marathon meeting with the Nuclear Power Corporation (NPC) today to take stock of the operational and emergency safety measures at the Tarapur atomic power station and the proposed nuclear plant in Jaitapur.

A state government team led by chief secretary Ratnakar Gaikwad met NPC chairman and managing director SK Jain, Atomic Energy Regulatory Board chairman SS Bajaj, Department of Atomic Energy additional secretary AP Joshi to address the concerns.

An NPC official, who attended the meeting, told Business Standard: “The government was apprised of the safety measures deployed at Indian nuclear plants especially at the Tarapur plant which is the only plant operational in Maharashtra. Tarapur I & II have boiling water reactors similar to the one in Fukushima I unit. Tarapur station, which comprises Tarapur unit I (160 MW), II (160 MW), III (540 MW) and IV (440 MW), has well defined emergency plans for fire, earth quake, flood & tsunami.”

The official said as far as the proposed Jaitapur project is concerned it was in the seismic zone III. The project site actually has much greater safety margins and it is quite safe and engineerable from seismic criteria. “The Station is also conducting Radiation Emergency (Plant, Site & Off-Site) Exercise routinely to check response of various agencies.”

The official said the nuclear power reactors to be set up at Jaitapur – the evolutionary pressurized reactors (EPRs) or Generation III+ nuclear power reactors – are state-of-the-art in terms of safety.

The EPRs are commercial reactors and not experimental reactors and they have several advanced safety features. These reactors essentially are an upgraded version of the French N4 and German Konvoy reactors which have demonstrated safe and reliable operations over several years.

French EPRs are currently under construction in Finland, France and China.

A senior state government official, on conditions of anonymity, said today’s meeting discussed the present state of safety measures at Indian nuclear plants in the wake of Fukushima incident.

“Both the central and state governments have made it amply clear that the Jaitapur project will be developed and there was no reversal on any decision in this regard. However, in the wake of the Japan nuclear disaster, safety measures will be revisited. Chief Minister Prithviraj Chavan discussed the issue with the minister of state for environment and forests Jairam Ramesh on Saturday in New Delhi. The issue of NPC’s preparedness to apprise locals on safety and security measures was also discussed at the meeting.”

On claims of the Jaitapur project severely affecting marine life, NPC officials said the ministry of environment and forests has, in its clearance, restricted the temperature to 5°C. Detailed scientific studies have also been conducted on the thermo-ecological aspects of discharge dispersion, with a view to restricting the temperature rise within 5°C. “There will be no adverse effect on the marine life around the site.”

Maharashtra govt to go ahead with Jaitapur nuclear plant

The Maharashtra government Friday announced its intention to go ahead with the 9900 MW Jaitapur nuclear power project (JNPP) by incorporating additional safety and security features if required.

Deputy Chief Minister Ajit Pawar, who holds the energy, finance and planning portfolios, informed the state legislative council that Prime Minister Manmohan Singh has ordered a review of the safety features in all nuclear power plants.Any additional safety and security features that are required would be incorporated in the Jaitapur plant in view of the earthquake, tsunami and radiation issues in Japan, he said.

Pawar pointed out that Atomic Energy Commission chairman Srikumar Banerjee has said that the Japan experience is being closely monitored and existing safety features would be strengthened in the nuclear plants in the country if needed.'All necessary safety and security measures will be implemented to ensure the safety of the local population,' Pawar assured the house, saying that while Japan falls under seismic zone IX, Jaitapur falls in seismic zone III with considerably less risk from earthquakes.

Pawar also said the crisis in Japan was caused by the tsunami and not because of the earthquake.Tsunami waves are generally between 25-30 feet high. However, the Jaitapur is located on a plateau which is around 75 feet high fromm the coastline, he pointed out.

Citing the examples of nuclear plants at Kakrapar in Gujarat and Kalpakkam in Tamil Nadu, where no harm was caused to local population despite being hit by the 2001 earthquake and the 2004 tsunami respectively, Pawar urged the members that the issue should not be politicised.'Playing politics (over JNPP) is not correct. We must think of the progress of Maharashtra in the long run. Especially since it is difficult to increase industrialisation without being self-sufficient in power,' Pawar said.

Referring to the proposal for hiking compensation for the 2335 persons affected by the Jaitapur nuclear power plant, he said it was awaiting the approval of Chief Minister Prithviraj Chavan.Following the serious damage to the quake-tsunami-hit Fukushima nuclear plant on Japan's east coast and the radiation leak there, fears over the safety of Indian nuke plants have encouraged activists to strengthen their campaign against the Jaitapur project.

Japanese nuclear crisis raises fears in Andhra Pradesh over proposed nuclear power project at Kovvada

The Japanese nuclear crisis has triggered fresh fears among people in Srikakulam district of Andhra Pradesh where protestshave been raging for several months over the proposed 2,000 MW nuclear power plant.

Environmentalists, local villagers and opposition parties are up in arms against the nuclear power project at Kovvada on the grounds that it would cause environmental pollution and large-scale displacement.

The villagers have been resisting land acquisition for the ambitious Rs 60,000 crore project, being taken up by the Nuclear Power Corporation Limited (NPCL) with US technical know-how.

The project, involving construction of six nuclear reactors with the capacity of each unit varying from 1,000 MWe to 1,250 MWe, requires a whopping 9,000 acres. With media reports from the earthquake-hit Japan projecting a major damage to the nuclear power plants and radiation fears, local Congress

MP B Jhansi and some leading environmentalists urged Prime Minister Manmohan Singh to suspend further measures on the Kovvada plant.

“The nuclear reactors proposed at Kovvada are untested, thus leading to serious safety concerns,” said noted environmentalist and former Union Power Secretary EAS Sarma. In a letter to the Prime Minister, the retired IAS officer said the country must learn lessons from the Japanese nuclear emergency and revisit the ambitious nuclear power programme.

Incidentally, Kovvada was among the first set of four sites identified by the UPA government in 2009 for setting up nuclear plants as part of the civil nuclear agreement with the USA. The other three sites are Pati Sonapur (Orissa), Haripur (West Bengal) and Kutch (Gujarat).

The local farmers and opposition parties have raised issues of radioactivity, pollution, and the effects on fish and groundwater.

“India has embarked on a nuclear adventure by opening the floodgates to foreign reactors, without ensuring that matching arrangements exist for an independent regulatory oversight. The Centre has shown utter disregard to public opinion,” Sarma said.

Referring to the strong earthquake and tsunami in Japan, Sarma said the details of the damage at each of the Japanese nuclear power plants would unfold in due course but “the damage could be more than what has been reported so far”.

While the cooling system at Fukushima nuclear plant failed, forcing Japan to declare a “nuclear emergency”, fire broke out at Onagawa, leading to evacuation of thousands of people.

Pointing out that many major and minor nuclear accidents had occurred in Japan in the past, the former civil servant said an accident at the Tokiamura nuclear power project in September 1999 had resulted in an uncontrolled chain reaction that led to serious radioactive exposure to 439 persons in the neighbourhood.

“Locating a nuclear plant at Kovvada can be a suicidal move,” another environmentalist T Sivaji Rao warned. 

Prime Minister orders review of safety systems at all nuclear plants - Government in touch with IAEA, other nuclear bodies

Prime Minister Manmohan Singh today said an immediate technical review of India's atomic plants has been ordered to check if they can withstand the impact of major natural disasters like tsunami and earthquakes in the wake of the catastrophe in Japan threatening a nuclear meltdown.

Making a statement in Parliament on the earthquake and tsunami in Japan, Dr Singh said Indian nuclear plants have, in the past, met the safety standards during major natural calamities like the Gujarat earthquake on January 26, 2002 and the December 2004 Tsunami.

The Prime Minister  informed both Houses of Parliament that India was in constant touch with the International Atomic Energy Agency (IAEA), the Japanese Atomic Industrial Forum and the World Association of Nuclear Operators.

"The Department of Atomic Energy and its agencies, including the Nuclear Power Corporation of India (NPCIL) have been instructed to undertake an immediate technical review of all safety systems of our nuclear power plants, particularly with a view to ensuring that they would be able to withstand the impact of large natural disasters such as tsunamis and earthquakes," he said.

Dr Singh said there are 25,000 Indians in Japan, most of who do not live in the areas affected by the tsunami and so far there are no reports of any casualties. About 70 Indians are in shelters established by the Japanese authorities in the tsunami-affected areas.

Expressing deepest condolences to Japan on behalf of the government, Parliament and the people of India, he said New Delhi would spare no effort to assist the tragedy-stricken country as "our resources are at the disposal" of that nation.Dr Singh said 25,000 blankets have already been airlifted as an immediate measure and search and rescue teams along with relief material were ready to be sent.

Indian Navy is also on standby to send its ships to Japan as part of relief, rehabilitation and reconstruction.

"We can never forget that India has been the largest recipient of Japan's Overseas Development Assistance (ODA). We have the best of relations with Japan," the Prime Minister said.

Noting that the disaster of March 11 had affected some of the atomic power plants in Japan, the Prime Minister said the government attaches the highest importance to nuclear safety.

India\'s N-plan may take a hit; equipment suppliers not worried

A screen grab taken from news footage by Japanese public broadcaster NHK on March 14, 2011 shows the moment of a hydrogen explosion at the Fukushima No. 1 nuclear power station number three reactor. (AFP)

Japan's nuclear crisis will create obstacles for India's atomic energy programme, but this has not dented the optimism of equipment suppliers such as GE and India's Larsen and Toubro as the country remains determined to expand capacity. The government has ordered a thorough review of India's 20 nuclear rectors and their ability to withstand natural disasters like a severe earthquake and tsunami that damaged Japan's Fukushima Daiichi nuclear plant . Prime Minister Manmohan Singh told Parliament that Indian nuclear plants had already weathered natural disasters like the Gujarat earthquake in 2002 and the tsunami in 2004 without any mishap. 

The chief executive of General Electric Co, which has built a reactor at Fukushima Daiichi nuclear power plant in Japan, said there was no change in his company's plans for India or its position on nuclear liability. He said it was premature to say that safety issues would cloud the outlook of the nuclear energy business. "There's now almost a 50-year track record on nuclear power and people can look back and make judgement. It's early days and we should let people do exploration on what happened and in the meantime support the recovery effort of Japanese government ," he said. 

"It is too early to make a profound decision on its impact for India. We need to let the process run its course in Japan and then look at an assessment." He said the company's position on nuclear liability had not changed. "The comments we have made about investing in nuclear energy in India haven't changed based on the tragedy in Japan, which is, we have said consistently that the regime in India has to fit the global liabilities regimes for nuclear power." 

No Change in India's Nuke Plan: AEC Chief 

The chief of Nuclear Power Corporation of India said India was likely to add close to 2,000 MW of nuclear power generation capacity by the end of the 11th Five Year Plan. The existing operational capacity is 4,870 MW, he said. "But we will not be complacent and even though as yet there is no nuclear disaster in Japan we will definitely learn from the ongoing difficulties being experienced by the nuclear plant in Fukushima by conducting a full detailed safety audit at all our existing and upcoming facilities," he said. 

SK Banerjee, chairman, Atomic Energy Commission said there was no change in India's nuclear programme. "Our overall nuclear programme will remain on track, although we will be conducting a stringent safety audit of all our existing 20 nuclear reactors . We are constantly monitoring the situation in Japan and we have an officer stationed there who is giving us an hourly update on the situation at Fukushima and we will spare no costs in conducting a comprehensive safety audit of all our facilities," he told reporters in Mumbai. But some energy experts in India say the crisis in Japan was already a setback for India's plans for nuclear energy plants, which account for barely 4% of power generation capacity, but were poised for expansion.

Japan leak may hamper India's power plans, says Nuclear Corp

India’s plans for a 13-fold increase in nuclear power generation may be delayed as Japan’s worst accident in at least 33 years forces a safety review of existing and proposed plants, Nuclear Power Corp of India has said.

“This event may be a big dampener for our programme,” Shreyans Kumar Jain, chairman of India’s state-run monopoly producer, said in a telephone interview from Mumbai today. “We and the Department of Atomic Energy will definitely revisit the entire thing, including our new reactor plans, after we get more information from Japan.”The accident at the Fukushima plant, triggered by Japan’s strongest earthquake, may fuel public concern about the safety of nuclear power. China today said it would become more cautious about its plans to triple the number of atomic reactors providing energy for the world’s second-biggest economy.

“We can’t close our eyes to peoples’ concerns, which may be heightened after the Japan accident,” Jain said.

India, which plans to spend $175 billion by 2030 on nuclear generation to meet the rising demand for electricity, is facing protests in western India, where landowners have expressed concern about nuclear waste from six Areva SA reactors to be built in the region.Nuclear Power had sought more information on the accident in Japan from the World Association of Nuclear Operators, the International Atomic Energy Agency and its own official in Tokyo, Jain said.

Possible meltdown

The earthquake on March 11 knocked out power at the Fukushima plant needed to keep the reactors cool, raising the prospect of a meltdown at the facility. Authorities evacuated tens of thousands of people living within a 20-kilometre radius of the plant after an explosion destroyed walls surrounding one of the reactors and radioactive material leaked into the atmosphere.

While operator Tokyo Electric Power Co has reported no damage to the protective shield housing the reactor, the utility began flooding the reactor with sea water and boric acid to eliminate the potential for a catastrophic release of radiation.Indian reactors at Kakrapar in western Gujarat and Kudankulam in Tamil Nadu survived an earthquake in 2001 and a tsunami in 2004, respectively, without any safety scares, Jain said.“But that doesn’t mean we can be happy,” Jain said. “Our new launches will have to keep in mind public sentiment and naturally, this process won’t happen overnight.”