NPCIL inks pact with REC to fund expansion plans

New Delhi: India`s nuclear operator NPCIL today inked a pact with the Rural Electrification Corporation (REC) to fund its massive expansion of the country`s atomic power programme.

The Nuclear Power Corporation of India Limited (NPCIL) signed a Memorandum of Understanding with REC for financing its expansion plans of setting up atomic power plants based on indigenous and foreign technology. "The MoU enables REC to finance the capital outlay and provide financial consultancy and services to NPCIL for its large capacity addition programme of setting up nuclear power reactors based on indigenous and foreign technology," a NPCIL release said.

The NPCIL operates 20 nuclear reactors with an installed capacity of 4780 MW. In addition, it is building four 700 MW indigenously designed nuclear reactors — two each at Kakrapar in Gujarat and Rawatbhata in Rajasthan. It has also signed agreements with France, the US and Russia for setting up 1000 MW or larger capacity nuclear power plants at sites across the country.

To meet the long term fund requirements for the ongoing projects, NPCIL is also raising loans through external borrowings and issue of non-convertible debentures/bonds through private placement basis, the release said. NPCIL is also looking at various long term financing options to obtain loans at the optimum cost to finance the infrastructure power projects, it said. REC is a public sector undertaking under the Union Power Ministry.