The signing of India's nuclear deal (123 Agreement) have paved the way for India's hunger for power and has shown light to a number of industries looking for additional business coming their way through construction and providing ancillary services. With the Government's plan to generate 40,000 MW of power through the use of nuclear energy, a new dimension has been added for the Indian business houses to tap the opportunity and explore this avenue. After all, at an estimated $2.5 billion per 1,000 MW, the nearly 30 new reactors that India would be adding up mean a huge business for the Indian and foreign companies to ignore.
There are nearly 500 companies, Indian and foreign looking to tap this arena including L&T, HCC, Tata Power and Rolta India. Further some small companies like, Avasarala Technologies, Walchandnagar Industries and SEC Industries are also willing to get in the fray. The international companies in this contention include GE Energy, USEC and Westinghouse Electric as well as French and Russian companies like Areva NP SAS (ARVCF.PK), Atomenergoproekt, and ZAO Atomstroyexport. Among the State-owned entities, Bharat Heavy Electricals (BHEL) and National Thermal Power Corporation (NTPC) are among the biggest contenders. Some major actions of the Indian companies:
- Alstom Projects India (AOMFF.PK) – already makes nuclear reactors and rotors. Its parent company is a world leader in conventional nuclear projects. It makes turbines for nuclear power stations.
- Gammon India – has undertaken turnkey construction for nuclear projects.
- Crompton Greaves – works with NPCIL. It has completed a switchyard for a nuclear project.
- ABB – makes components for power projects. Its parent company's exposure includes new nuclear power plants, systems and components.
- Tata Power Company – has tied up with some major nuclear equipment suppliers like Areva. It already has a relationship with Toshiba.
- Bharat Heavy Electricals (BHEL) – supplies up to 500 megawatt of equipment to NPCIL
- National Thermal Power Corporation (NTPC) – is in talks with NPCIL for setting up a 2000-megawatt nuclear plant.
The benefits of this agreement are going to be rampant for the industry and for the nation as a whole. Moreover it would further accelerate India's partnership among the other nations and would see the awakening of a new era in the arena of nuclear power.
Stock position: None.