4 Nuclear equipment makers in race to join Bhel-NPCIL JV

Mumbai: Four leading nuclear equipment manufacturers are in race to become the technology partner for the joint venture between public sector power equipment major Bharat Heavy Electricals (Bhel) and Nuclear Power Corporation of India (NPCIL) the country's nuclear power manager to manufacture turbines for nuclear power plants in India.

'Siemens of Germany, Turbo Item of Ukraine, Paris-based Alstom and General Electric of the US have shown keen interest to partner with us for steam turbine manufacturing and we are negotiating with them,' said a senior Bhel official on the sidelines of Power India 2008 exhibition in Mumbai.

Bhel had invited an Expression of Interest (EoI) this month in search of a 'technology partner' for making 700 MW, 1,000 MW and 1,600 MW turbines.

The joint venture, NTPC-Bhel Power Project (NBPPL), was formed in May this year for carrying out engineering, procurement and construction (EPC) of power plants and other infrastructure projects in India and abroad as well as to take up manufacturing of nuclear equipment.

NBPPL plans to have a manufacturing capacity of 5,000 MW annually by 2014-15, with an investment of around Rs 6,000 crore.

Initially, NBPPL shall focus on EPC projects and balance of plant (BoP) of power plants, which would require a capital of Rs 1,200 crore. Leading private financial institution IL&FS will buy 50 per cent stake in the JV to fund the projects and as a strategic financial partner, said sources.

Bhel, which is adding its capacity, already has a tie-up with Siemens for manufacturing 600 MW heat turbines and boilers. Bhel is also a contractor for many of NPCIL's 17 nuclear power plants that have come up in India.

Leading global nuclear equipment manufacturers such as General Electric, Toshiba Corporation’s Westinghouse, Rosatom of Russia and Areva of France are also in talks to form joint ventures with Indian companies to manufacture new generation light water reactors (LWR) and related equipment in India.

NPCIL, the country’s sole nuclear power manager, is discussing with these companies to act as a facilitator for equipment manufacturing deals, NPCIL CMD S K Jain said in a recent interview.