NPCIL and L&T will announce the formation of the joint venture to manufacture nuclear forgings on Monday, a source privy to the development said.
Sudhinder Thakur, executive director (corporate planning), NPCIL, had on May 21 last year said that NPCIL and L&T would form a joint venture to manufacture forgings with an investment of Rs 1,500-2,000 crore.
The two companies have taken a decision to form the JV, but are yet to finalise other details, he had said.
Forgings withstand the pressures inside a nuclear reactor and also keep the dangerous radiation from escaping to other areas of the plant or the surrounding community.
NPCIL in its annual report mentioned that the supply chain for large-size equipment for light water reactors could pose a constraint in planning projects with desirable schedules.
Very limited suppliers of large-size forgings in the international market is proving to be a major bottleneck, NPCIL said in the report.
Osaka-based steel-making giant Japan Steel Work is the worlds only maker of ultra-large forgings.
With the joint venture with L&T, NPCIL will begin the process of manufacturing large forgings in the country, according to a NPCIL official.
NPCIL, the sole nuclear power generator in the country, has a total capacity of 4,120 mw. This is expected to go up to 6,780 mw by 2011 as the on-going projects under development become operational.
NPCILs four reactors are nearing completion and one went critical last week. Four more are at planned stage while 17 are operating.
The signing of the civilian Indo-US nuclear deal heralds a new era for the nuclear power sector in India as it offers an opportunity to establish partnerships with companies in the nuclear power industry world over.