The Russian state bank, Vnesheconombank, has already given a letter of guarantee for the completion of the project to the Indian authorities. Atomstroyexport, the Russian agency, and India's Nuclear Power Corporation (NPC) will jointly execute the project.

"Only 10 per cent of the cost will be borne out of the rupee debt. Ninety per cent of the credit will be in hard currency", Albert S. Chernyshev, Ambassador of the Russian Federation in India, told The Financial Express.

The Russian credit will be repaid over a period of 12 years, after the commissioning of the project, which will be completed in two phases, involving erection of two water-cooled and water-moderated reactors of 1,000 MW capacity each. The first phase will be completed in seven years and the second in another two to three years.

"Most of the equipment will besupplied by Russia though there will definitely be some Indian content. More than 200 Russian factories and research establishments will be involved. We have already received the Indian payment of $5.7 million for preparation of techno-economic feasibility report which will completed within two years", Chernyshev said.

According to Chernysheve, the VVER-1000 reactor design which has been selected for the Kudankulam project is considered to be the safest possible option. As many as 250 such reactors, including 47 Russian-made, are in operation worldwide.