L&T signs pact with Westinghouse of US
For pressurised water nuclear reactors.
Our Bureau
Mumbai, Jan. 16 Engineering and construction conglomerate Larsen & Toubro has
signed a memorandum of understanding with US-based Westinghouse Electric
Company (WEC) to offer pressurised water nuclear reactors with modular
construction technology in India.
Of the 450 reactors operational worldwide, Toshiba-owned WEC has a market share
of 40 per cent, while in the US it has 60 per cent.
Mr M.V. Kotwal, Director, L&T, said "The deal will enable to utilise indigenous
capabilities of both the companies for the turnkey construction of nuclear
power plants, including supply of reactor equipment and systems, valves,
electrical and instrumentations products and fabrication of structural, piping
and equipment modules for the Westinghouse AP 1000 plants."
Incidentally, L&T has a tie-up with Mitsubishi Heavy Industries of Japan for
manufacturing super-critical steam turbine and generator.
Potential business
Giving reasons for not furthering ties with Mitsubishi for nuclear initiatives,
Mr Kotwal said the Japanese government was yet to spell out its policy on
nuclear deals with India, but hoped that it would do so eventually.
On the potential business opportunity, Mr Kotwal said, on a realistic estimate
the cost of generating a megawatt of nuclear power would range from Rs 7 crore
to Rs 18 crore depending on parameters such as location of the plant,
logistics, technology and financing.
India has set a target of achieving 30,000 MW of nuclear power by 2020 and
60,000 MW by 2030. "If the target is to be achieved we are looking at an
opportunity of Rs 60,000-80,000 crore by 2020."
L&T has been accredited by the American Society of Mechanical Engineers to use
"N" and "NPT" stamp, which is critical for supply of equipment to nuclear
reactors.
Reactor orders
Ms Meena Mutyala, Vice-President, WEC, said "The AP 1000 reactor, which we are
planning to sell to India, is the third generation plus design. Apart from
being economical, it also has advanced safety features."
China has ordered four AP 1000 reactors, while the company will be installing
six in the US. The first of the four reactors in China will become operational
in 2013, she added.
Ruling out that Russian and French companies were at an advantage for supplying
reactors to India as they are largely owned by the Government, Ms Mutyala said,
"As per my understanding, the Indian government is in an advanced stage of
framing the liability legislation, which will take care of private company
participation in nuclear programmes."
Moreover, the Indian Government has committed to source equipment for
generating 10,000 MW from US companies, she said.
http://www.thehindubusinessline.com/2009/01/17/stories/2009011752140200.htm
ekamber
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