The Hindu Business Line : Indian firms gear up as US Congress approves nuke deal

Landmark legislation
The `Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006' is expected to be signed by Mr Bush into law.

New Delhi , Dec. 9

With the US Congress giving its final approval early Saturday to a landmark legislation allowing export of civilian nuclear fuel and technology to India after a 30 year-hiatus, domestic players are gearing up to put their nuclear plans on the fast track.

While the Senate passed the deal by voice vote during an all-night session, the House of Representatives approved it 330-59 late Friday. The legislation reconciles separate Bills adopted by the House and Senate aimed at implementing a nuclear agreement between the Prime Minister, Dr Manmohan Singh, and the US President, Mr George W. Bush, in July last year.

Named after the outgoing Republican Chairman of the House International Relations Committee, the `Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006' was expected to be signed by Mr Bush into law. "This truly bipartisan effort is an excellent step forward... It recognises the nuclear reality of India," Mr Hyde, a 16-term Congressman, said.

The deal still has to clear several hurdles to become effective, with the US and India needing to frame a comprehensive agreement incorporating all technical elements of the deal, which has to be passed by the US Congress again.

It includes a set of international nuclear safeguards to be approved by the International Atomic Energy Agency, the global nuclear watchdog, and to which India must adhere to. The deal also needs the backing of the influential 45-nation Nuclear Suppliers Group.

Indian civilian nuclear monopoly player, State-owned Nuclear Power Corporation of India Ltd (NPCIL) and new aspirants in the sector including thermal giant NTPC Ltd, private sector firms Tata Power, Reliance Energy and Sterlite are likely to get their efforts into the fast track mode.

With the deal going through, NPCIL is likely to get working on plans for about five new coastal nuclear projects with high-end reactors of 1,000 MWe or above. The utility had a joint presentation meeting with a visiting delegation of American nuclear equipment manufacturers and vendors late last month.

NTPC has already advanced plans to commission nuclear projects with a total capacity of around 2,000 MWe to the year 2013, from the original target of 2017. The company, which has sought Government approval for its foray into nuclear power, is looking at the joint venture (JV) route and is in talks with established nuclear players. Equipment major BHEL has had discussions with foreign players such as Siemens, Westinghouse, GE Energy, Alstom, Skoda and TurboAtom for a technical tie-up for high-end nuclear equipment and is likely to clinch a deal shortly.

Private players such as Tata Power, Sterlite and Reliance Energy Ltd are awaiting approval from the Centre and necessary amendments to the Atomic Energy Act before kicking off their nuclear plans.

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