The first tranche of foreign investment in the Indian nuclear sector will come from

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France. Bharat Heavy Electricals (Bhel) and Nuclear

Power Corporation of India (NPCIL) have picked Alstom of France as partner in a three-way joint venture. It will manufacture equipment for uranium-fed power plants.

Bhel and NPCIL, which are 50:50 partners in a joint venture, may offload up to 30 per cent equity in it to Alstom.

Bhel chairman and managing director K Ravi Kumar, however, denied to comment on the issue. “We have identified our technology partner. The talks are in advanced stage. There are certain small issues, which will be ironed out soon. An announcement is likely by September 15,” he said. Scrip of the company closed at Rs 2,261.20, down 2.31 per cent on the Bombay Stock Exchange on Tuesday. On being contacted Alstom did not offer any comments. As a technology provider, Alstom will be required to transfer complete technology for the design, manufacture and commissioning of 700 mw and 100 mw turbine generator sets. Besides, it will have to provide a maintenance programme for the plants.

As per the Atomic Energy Act, technology suppliers like Alstom can participate in nuclear power generation only in joint venture with government-owned companies like Bhel and NPCIL.

France was the first country to sign a civilian nuclear pact with India after the nuclear suppliers’ group lifted a 34-year-old ban on trade in nuclear fuel with the country. The US, Russia, and

Kazakhstan are the other nations that have so far entered into nuclear fuel and technology agreements with India.

India’s existing nuclear plants have either 220 mw or 500 mw capacity. Nuclear energy accounts for less than three per cent of the 1,45,000 mw of installed power capacity. The country is currently power deficient to the extent of 13 per cent. The government intends to add 78,577 mw to the overall capacity in the current plan ending 2012.

Of this about 3,380 mw will be nuclear power.

Bhel also has a preliminary agreement with GE - Hitachi Nuclear Energy, which will prepare the roadmap for the manufacture and construction of

multiple-unit advanced boiling water reactor nuclear power stations of 1,320 mw capacity.

Bhel and NPCIL signed a memorandum of understanding to set up the joint venture for nuclear power in April 2008. On its behalf, Bhel invited bids in October last year, seeking technology for turbines, generators and auxiliary packages.

Besides Alstom, talks were held with Siemens and GE for the manufacture of conventional nuclear equipment. Discussions were also held with Toshiba and GE for sourcing technology.

Bhel already supplies equipment to nuclear power projects in the country. It has commissioned about 80 per cent of the 4,120 mw installed capacity of NPCIL, India’s only permitted nuclear power utility.

NTPC has signed a joint venture agreement with NPCIL for a planned entry into nuclear power. Private firms like Reliance Power, Tata

Power, Jindal Steel and Power are lobbying hard to enter the sector.