NPCIL to borrow $5.7 bn for world’s largest nuclear plant
NPCIL is in talks with a consortium of 12 European banks, including BNP Paribas SA, HSBC Holdings Plc and Societe Generale, to raise as much as 4 billion euros ($5.7 billion) to finance its proposed 10,000 mw nuclear power plant at Jaitapur in Maharashtra. Reactors for this plant — the largest in the world — will be supplied by Areva, a French nuclear power equipment manufacturer, according to a senior NPCIL official.
The loan will be guaranteed by French trade credit insurance company Coface SA. The total cost of the project, with a debt-equity ratio of 70:30, is about $18 billion. The PSU will have to arrange for the rest of the loan component from domestic lenders such as Power Finance Corporation.
“The challenge of large-scale nuclear power capacity addition in a rapid manner has, indeed, provided an opportunity for further enhancing country’s capability in adopting and implementing diverse technologies,” says NPCIL chairman and managing director SK Jain.
The state-owned generator plans to put up six reactors each with 1,650 mw capacity at Jaitapur. The ministry of environment and forests (MoEF) recently issued environmental clearance for the project after dithering over the issue initially.
Some environmentalists had raised concern about the possible environmental impact of putting up such a large nuclear power plant at a site that according to them, falls in
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