French nuclear major Areva expects to sign contract with Nuclear Power Corporation (NPCIL) by the middle of next year for the supply of two reactors and fuel to Jaitapur project in Maharashtra, says the company?s India head.
?There is absolutely no problem. We will finalise contract with NPCIL by mid 2011,? Arthur de Montalembert, managing director, Areva India, told FE.
?It takes time to finalise contractual terms for projects of such complexity,? he said while explaining the delay in the signing of contract.
He also allayed concern being raised about the safety and reliability of Areva?s EPR reactors because of the fact that these are not yet in operation and hence untested.
?These EPR reactors have not come out of the blue. It is an evolution technology based on latest reactors put in operation in France and Germany,? Montalembert said.
NPCIL has recently signed framework agreements with Areva for the supply of two 1,650 mw reactors and fuel for the first phase of capacity addition envisaged at Jaitapur.
The bulk of NPCIL?s 4,560 mw generation capacity is based on small reactors with capacity of 100 mw, 220 mw. But Areva?s big rectors have the potential to completely change the nuclear generation in India. For example, by installing just (EPR reactors from Areva, NPCIL can generate as much as 3,200 mw electricity.
Areva will take care of engineering, design and supply core components for the nuclear reactors. NPCIL will be responsible for installing supplied equipment. On fuel pricing for the project, AREVA MD said it is entirely up to NPCIL to choose what type of pricing for fuel supply it wants
?It could be either a fixed price or a market price or a mixture of both,? he said referring to global practice for uranium pricing for nuclear power plants.