NPCIL plans to raise Rs 50,000 cr by '11 Through Tranches, Bonds

The State-owned Nuclear Power Corporation of India (NPCIL), which operates 17 plants with a total capacity of 4,120 MWe, plans to raise Rs 50,000 crore through tranches of tax-free bonds by 2011 to realize its target of 22,000 MWe by 2022, according to a senior government official.

The Atomic Energy Commission, the governing body functioning under the Department of Atomic Energy, has sent a proposal in this regard to the Prime Minister's Office.

NPCIL estimates that the 2022 target could be met if the technology transfers and fuel supply contracts from foreign countries pan out as planned. The corporation, which has six more units under construction, wants to enhance the capacity of existing sites instead of setting up reactors at new sites. The corporation currently has cash reserves of about Rs 10,000 crore.

According to estimates by the Planning Commission, nuclear power generation in the country needs to be scaled up to 63,000 MWe by 2032 which would require an infusion of an investment of about $100 billion.

In the world of nuclear energy, interest rates and capital expenses make up about 75 percent of the total cost of the power generated. Variable costs for nuclear energy are low, but stringent financing terms can push up the overalls thus making the power expensive.

India's nuclear energy hopes had brightened up after a recent landmark agreement with the US and the Nuclear Suppliers' Group (NSG) that controls sale of nuclear fuel and technology. After which, the government had begun the groundwork to allow private companies in the sector.

"The amendment of the Atomic Energy Act, 1962, which bars private players, is a legislative decision. But AEC is currently looking into provisions that have to be amended and other policy formulations. It remains to be seen whether we will be able to keep up the momentum," the official said.

However, industry experts say that private players will get a role to play in India's nuclear power sector only by 2014 when the country would have completely segregated its civilian and strategic nuclear sectors.