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CHENNAI, NOV 6: The government of India and the Russian Federation have agreed to spend $57 million for the detailed project report (DPR) on the 2x1000mw each nuclear power plant of VVER reactors at Kudankulam in Tamil Nadu.
The government, which is establishing the Kudankulam plant through the Nuclear Power Corporation of India Ltd (NPCIL) in technical collaboration with the Russian Federation, will initially fork out 10 per cent of this amount.
After the techno-economic report is cleared the government will pay the rest of the money for the project after it is commissioned by year 2006-2007. NPCIL chairman and managing director YSR Prasad said the project cost is estimated at $3.1 billion and the Russian Federation will provide a soft credit of $2.6 billion at 4 per cent interest per annum. The credit amount used is repayable in 14 equal annual instalments starting a year after the date of the commissioning of each unit of the power plant.
The DPR is to be finalised within 24 months. The Russianswill employ a total of 300 to 400 persons in the detailed design and preparation of the report while 30 people from India will be working on the DPR in Moscow.
Russian Federation chief of department of atomic energy N Ermakov said the VVER reactor designed for the Kudankulam nuclear plant is of the most advanced design with international safety standards. Unlike the Chernobyl reactor which had graphite as moderator and a complicated design with 2000 channels with a very large active core, the new VVER reactor was having water as moderator and had in-built safety systems to cool off.
The NPCIL chief said while Russia will fund 60 per cent of the project costs, the balance 40 per cent will be met by NPCIL with budgetary support and long-term loans.
Long-term bond issue on the cards
NPCIL plans to issue long-term bonds of 10- to 15-year period for raising Rs 300 crore to Rs 500 crore sometime in the beginning of next year, Prasad said. NPCIL looks to getting 50 per cent of the cost of a projectthrough budgetary support and the balance 50 per cent from internal resources. It has been issuing bonds worth Rs 300 crore to Rs 400 crore regularly each year with tenor of five to 7 years. But the new bonds to be issued early next year will have a longer tenor of 10 to 15 years to raise much needed funds for new projects for Tarapur 3 & 4 units scheduled to be completed by 2005-2006.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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