Deal to fast-track Jaitapur Nuclear-plant to address technicalities and pricing issues

With India and France agreeing to expedite the setting up of the Jaitapur nuclear power plant, the move is expected to help settle several long-pending issues, including those regarding the technicalities and pricing of the project, sources said.

During the visit to France of Prime Minister Narendra Modi, India signed two agreements related to the Jaitapur Nuclear Power Plant (JNPP).

The first, a pre-engineering agreement signed with AREVA, Alstom and Nuclear Power Corporation of India (NPCIL), aims to bring greater clarity on all technical aspects of the project.

The agreement is also expected to allay the apprehensions of the Indian side, especially with the new EPR (European Pressurised Reactors) technology, which are to be used in Jaitapur.

A major bone of contention between the two sides is the high cost of the electricity. While the cost of the electricity generated by Kudankulam Nuclear Power Project (KKNPP) Units I and II hovers between Rs 3 to 3.50 per unit, for JNPP, it is expected to be Rs 9.14 per unit. Sources said the high costs were a major impediment during the talks as DAE is ready for a price between Rs 6 to Rs 6.50 per unit.