Even as the impasse with French nuclear supplier Areva continues over cost of power from the Jaitapur nuclear plant, the Department of Atomic Energy has clarified that the cost cannot be more than Rs 6.5 per unit.
R.K. Sinha, Secretary of Department of Atomic Energy, told reporters on Thursday on the sidelines of India Nuclear Energy Summit, that price cannot exceed Rs 6.5, when the project comes up in 2022.
“This price has been agreed, even by the Ministry of Finance and the Planning Commission,” he said.
Sinha, who is also the head of India’s nuclear programme, said that the per unit cost from the Jaitapur plant has to be similar to the cost from other power plants in that area, coming up in the same time frame.
Due to the adverse economic scenario, exchange rate fluctuations, per unit cost of nuclear power cannot exceed conventional sources, he said.
The price negotiations with Areva have been going on for the last two years for building the 10,000-MW Jaitapur nuclear power plant in Ratnagiri district of Maharashtra. The Nuclear Power Corporation of India Ltd (NPCIL) is the lead project developer.
Both Areva and NPCIL are holding extensive talks on issue of per unit cost and the implication of the Nuclear Liability Act and rules of the act.
The Secretary added that the nuclear equipment suppliers were apprehensive about the implications of the law and liability of Rs 1,500 crore, which has to be paid in the event of any serious nuclear accident.
The law has another provision, which says the figure of Rs 1,500 crore could be increased in future. It is a matter which can be settled through discussions, he said.
The insurance premium for paying the liability of Rs 1,500 crore is being worked out but it would not be very high. Some financial models are being worked out, Sinha added.