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GE Hitachi Nuclear Energy Shortlisted to Supply Light Water Reactors to India

BANGALORE, INDIA--October 24, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--GE Hitachi Nuclear Energy (GEH) (Wilmington, North Carolina), the nuclear arm of General Electric Company (NYSE:GE) (Fairfield, Connecticut) in which Hitachi Limited (NYSE:HIT) (Tokyo, Japan) owns a 40% stake, is one of the four firms shortlisted by Nuclear Power Corporation of India Limited (NPCIL) (Mumbai) to supply light water reactors for India's nuclear power program. GEH hopes to be involved in setting up new nuclear power projects and providing plant services in addition to supplying fuel for existing and proposed nuclear power projects. GEH's product portfolio for India includes advanced boiling water reactors and economic simplified boiling water reactors. Other companies in talks with NPCIL include Atomstroyexport (Moscow, Russia), Westinghouse Electric Company LLC (Monroeville, Pennsylvania), and Areva NP (Paris, France), a joint venture between Areva (EPA:CEI) (Paris, France) and Siemens AG (NYSE:SI) (Munich, Germany).

With India's bilateral nuclear agreements with the U.S. and France already in place and a similar agreement between India and Russia likely to be signed in December this year, NPCIL has commenced negotiations with potential suppliers. In addition to GEH's advanced boiling water reactors, NPCIL has shortlisted three vendors on the basis of suitability of technical parameters for India's nuclear power requirements. These include Westinghouse's AP1000 reactor series, Areva's European Pressurized Reactor units, and Atomstroyexport's VVER 1000 (V-392) reactors for initial placement of orders.

NPCIL envisages the development of four "Nuclear Parks," consisting of clusters of nuclear reactor units to generate an aggregate of 45,000 megawatts (MW) of power. Each nuclear park or cluster would be made of up to eight reactors with capacities of 1,000 MW each or six reactors with capacities of 1,600 MW each at a single location. NPCIL will initially place orders for two reactors to be set up at each location followed by subsequent orders for more units.

NPCIL is in talks with Atomstroyexport to build VVER-1000 (V-392) nuclear reactors at Kudankulam, Tamil Nadu, where two such units are already under construction and are slated for commissioning by early next year. The Indian Government plans to firm up draft economic and technical proposals for the proposed new reactors at Kudankulam by April 2009. Areva is likely to be assigned a greenfield site at Jaitapur, Maharashtra, for setting up two reactors at the site. NPCIL is yet to decide upon locations to be allotted to GEH and Westinghouse for setting up greenfield nuclear power projects. Andhra Pradesh, Saurashtra in Gujarat, Pati Sonapur in Orissa, and West Bengal are other locations where imported light water reactors are likely to be set up.

When and with which supplier the first contract for new reactors will be signed remains to be seen. NPCIL has also announced plans to secure up to 2,000 tons of uranium fuel by the end of this year to feed existing and upcoming reactors in the country. The firm's proposed technical agreements with the four shortlisted vendors could also be inclusive of fuel supply by the vendor for the lifetime of the reactor units provided.