IndianOil, NPCIL to identify sites for nuclear plants
New Delhi   25-Nov-2009
IndianOil has inked a memorandum of understanding (MoU) with the Nuclear Power Corporation of India Ltd. (NPCIL) to set up Rs. 10,000-crore nuclear power plant. "We have signed an MoU for setting up at least one 1,000 MW nuclear power plant with NPCIL," Mr. B. M. Bansal, Director (Business Development), IndianOil told journalists here on the sidelines of a conference. NPCIL will be the main operator and have a 51 per cent stake while IndianOil is contemplating taking either 49 per cent or 26 per cent interest. "Nuclear power gives us a good opportunity to become an integrated energy firm. We want to gain experience and may be at a future date we may set up nuclear plants on our own," he added. IndianOil could invest Rs. 1,000-1,500 crore as equity in the project with NPCIL. The nuclear power project offered assured returns unlike the company's refining business that is subject to highly volatile margins. Techno-commercial modalities, including source of nuclear fuel and site would be decided over the next six months. "We have requested NPCIL to involve us in an approved project so that the project is in place by 2014. It may take six years to build a project at a site already not approved, he added. IndianOil signed the MoU with NPCIL on November 4 to venture into nuclear power generation. Mr. Bansal said the two companies would, over the next six months, identify the project site, source of fuel and project structure.