Indian Oil teams up with NPCIL

Indian Oil Corporation Ltd (IOCL) and Nuclear Power Corporation of India Ltd (NPCIL) have signed a joint venture agreement for the construction of nuclear power plants in the country. 

The agreement was signed in Mumbai on 12 January by IOCL chairman Brij Mohan Bansal and NPCIL chairman and managing director S K Jain. The signing of the joint venture agreement follows a memorandum of understanding between the two companies in June 2009.

The heads of NPCIL and IOCL shake on the agreement (Image: IOCL)

In a statement, IOCL said: "In its endeavour to be an integrated energy major and especially to partner low-carbon energy business, Indian Oil is steadfast in its commitment to partner India's energy security goals." It added, "With this historic agreement, the corporation's already successful forays into renewable energy sources like solar, wind bio-fuels, hydrogen, etc, will now be augmented by nuclear energy. Nuclear energy offers emission-free and environment-friendly energy on the expanding scale the world so urgently requires."

In April 2010, NPCIL signed an agreement with India's National Thermal Power Corporation (NTPC) for the construction of new nuclear power plants. Under the deal, a joint venture company will be set up as a subsidiary of NPCIL, in which NPCIL will hold a 51% stake and NTPC will hold the remainder.

The NPCIL-NTPC joint venture was the first joint venture in nuclear power generation in India. Several private companies in India have expressed an interest in entering the nuclear power generating business through joint ventures with NPCIL.

Presently, only NPCIL and Bhavini - a government enterprise set up to focus on fast breeder reactors - are authorized to construct nuclear power plants in India. Current legislation calls for NPCIL to hold a majority stake in any nuclear power plant project. It is expected, however, that the rules will be changed in time to allow other competent companies to control nuclear infrastructure.

Researched and written

by World Nuclear News