The Kudankulam nuclear power project, which is expected to pump in the first unit of electricity into the grid by the end of June, will sell power to the state utilities at around Rs 2.65 a unit, Mr S.K. Jain, Chairman and Managing Director, Nuclear Power Corporation of India Ltd (NPCIL), told today.
The exact rate will be known only after the plant is commissioned and full capacity is reached.
Right now, unloading of the ‘dummy fuel’ is happening. The process will be over in a couple of days. Soon after, the real fuel will be loaded.
The 1,000-MW unit-1 will start generating electricity by the third week of June, or at least by the last week of the month, Mr Jain said.
No alternative to nuclear power
Mr Jain feels that there is no alternative to nuclear power. Coal is polluting, wind is uncertain and “solar will never succeed in India” given the dust levels in the country. (Dust settles down on solar panels affecting generation.)
Nuclear power is also cheap, he said, pointing out that in 2011-12, NPCIL sold 32 billion units of electricity at an average price of Rs 2.44 a unit.
Mr Jain noted that the tariffs are little affected by either rise in fuel prices or factors such as the depreciation of the rupee. Fuel cost constitutes only a fifth of the cost of generation. Besides, fuel for several years is bought in bulk and stored.
“I have ten years’ worth of fuel for the Kudankulam project,” Mr Jain said, “stored in just one room’’.