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Jaitapur nuclear power project faces hurdles

Friday, 29 Nov 2013
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The nuclear power plant of Nuclear Power Corporation at Jaitapur in Ratnagiri district of Maharashtra, has run into hurdles due to a rise in the cost of equipment.


The project has been hampered due to a rise in the cost of equipment to be secured from French supplier Areva S. A. In 2010, Nuclear Power Corporation had signed an initial pact with Areva to supply and install equipment needed for building two nuclear power reactors of 1,650 MW each, at Jaitapur.


But cost of the equipment has risen due to the higher cost of borrowing, as well as a slide in the rupee's value against the US dollar this year, which will more than double the cost of electricity generation from the initial estimate of about Rs four (6.4 US cents) per unit.


The project, with 1,650 x 6 units capacity, is estimated to cost Rs 33,000 crore.

 

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