The corporation hopes to get the required financial assistance from the centre as its projects largely depend on budgetary support. "Even if the centre gives half of the money needed in 20 years, the balance can be met through internal accruals and bonds," said R Chidambaram, chairman Atomic Energy Commission.

On the occasion of the "ground breaking ceremony" for the two nuclear stations at Tarapur, Maharashtra, he said that India had no option but to enhance nuclear power generation. NPC is setting up two units of 500 mw each at Tarapur where it already operates two stations of 160 mw each. The project cost of the proposed Tarapur Atomic Power Stations 3&4 is approximately Rs 4,500 crore based on the cost estimates of 1996, however, with the interest duringconstruction the cost will be around Rs 6,400 crore.

Apart from the centre's outlay for its projects NPC raises funds from the bond market through tax-free and taxable bonds. The corporation, however, faces constraints in raising funds because of the longer gestation period of its plants. Since a nuclear plant usually takes six to seven years for completion redemption of bond in a five or seven-year is difficult, the company, said YSR Prasad, chairman and managing director NPCIL.

For the current year the centre has sanctioned Rs 820 crore to NPC which will be used for these new units and also for the ongoing projects.

"In the view of the limited stock and the high cost of the conventional fuel such as coal and gas in the country, nuclear power generation should be encouraged," said Chidambaram.

For the thermal projects cost of fuel and its transportation go up every year significantly as compared to the NPC's outgo on these components, added Prasad. Besides these plants are based on completelyindigenous design, technology and products which also makes them cheaper in long run, Prasad said.