Category — Nuclear Energy

According to V. Narayanasamy,  Minister of State in Prime Minister Office, the first unit of the Kudankulam  Nuclear Energy project is expected to begin its operations this month after having received the stage-wise clearances from the Atomic Energy Regulatory Board.

On Monday, India’s External Affairs Minister Salman Khurshid had bilateral talks with Russian Deputy Prime Minister Dmitry Rogozin in Moscow in which he said that the first unit of Kudankulam project was at a sub-critical stage and was expected to be commissioned ‘any day’ in May. Moreover, he assured the Russians that work on the second unit would be sped up.

The two 1,000 MW VVER light water nuclear reactors  are being built at Kudankulam near India’s southern tip,  with the participation of Russia.

According to Patrick Suckling, Australian High Commissioner to India, Australia is willing to sell uranium to India but it is subject to negotiations. Indeed, before Australia starts exporting its Uranium, some requirements have to be met. First of all, the civil nuclear co-operation talks need to be concluded and secondly, Australian requirements have to be met including a promise that no uranium will be used in weapons making facilities.

Last year, bilateral trade between the two countries reached $18.46 billion. Imports from Australia stood at $15.4 billion while exports stood at $3 billion.

According to Patrick Suckling, “Negotiations are on. However, Australia is willing to sell uranium only if India promises that the mineral will be used for peaceful purposes.”

According to a U.S trade representative, India is a land of opportunity for global nuclear supplier. Vijay Sazawal, a member of the U.S Civil Nuclear Trade Advisory Committee, said that “India is possibly the only nuclear market where vendors will not be asked to compete against each other to provide the lowest bid”.  He also highlighted some barriers when trading in India’s nuclear sector such as the Indian legal framework under which foreign suppliers are held liable for accidents at plants found to be using their technology.

Now, India has the third highest number of nuclear reactors under construction. Indeed, seven are expected to be built by 2016. Moreover, the government of the country wants the total nuclear capacity of India to reach 35 GW by 2020.

What this means

Foreign companies should look past the initial obstacles toward the huge opportunities that exist in India’s current fleet and the new construction that is to happen.  My company Amritt, has a research paper on the subject. Email usa at amritt dot com for a price and a table of contents.

According to the Economic Times, the US-India Business Council (USIBC) has said that India needs to address the concerns of nuclear liability bill if it wants foreign and domestic Indian suppliers to participate fully in the Indian Market.

USIBC also said that two companies (GE Hitachi Nuclear Energy and Westinghouse Electric Company) are having commercial discussions with the Nuclear Power Corporation of India Limited. They both look forward to the conclusion of Early Works Agreements. Other companies (in the fuel cycle and supply chain) look forward to supporting those two companies in their projects.

Canada’s Prime Minister Stephen Harper is on his second trip to India right now.  Based on progress yesterday, here is what their office announced relating to nuclear energy cooperation.  18 of India’s 20 nuclear reactors use heavy-water technology, and the first such reactor in India was supplied by a Canadian company.

Prime Minister Stephen Harper, together with Indian Prime Minister Manmohan Singh, announced the conclusion of negotiations for the Administrative Arrangement (AA) between Canada and India that will allow the implementation of the Nuclear Cooperation Agreement (NCA), signed between the two countries in June 2010.
The Nuclear Cooperation Agreement – together with the Administrative Arrangement (AA) through which it will be implemented – will allow Canadian firms to export and import controlled nuclear materials, equipment and technology to and from India to facilities subject to safeguards applied by the International Atomic Energy Agency. Individual exports and imports are also subject to licensing under the Canadian Nuclear Safety and Control Act and the Candian Export and Import Permits Act.

Canada’s nuclear non-proliferation policy establishes the conditions under which Canada may engage in nuclear cooperation with selected partner countries. Now that the negotiations for the AA are complete, the Canadian Nuclear Safety Commission and India’s Department of Atomic Energy will formally sign them and the Governments of Canada and India will take the necessary steps to bring the NCA into force in a “timely manner”.

The NCA will provide access for members of Canada’s nuclear industry to India’s expanding nuclear market and facilitate the exploration of joint commercial ventures and research and development.
Nuclear energy production in Canada generates about $5 billion in annual revenues. Canada’s nuclear industry is responsible for 21,000 direct jobs and a billion dollars a year in uranium exports.

What this means

Since Canada and India are the world’s largest uses of heavy water technology for nuclear energy production, cooperation between the two countries is natural and good for both countries and their companies. It can improve safety, efficacy, and productive employment in both countries in addition to producing non-carbon emitting energy.

Canadian companies are soon going to need to find a meaningful answer to the term “timely” referred to in the Harper statement above. There are opportunities for two-way collaboration; for example Canada hasn’t actually produce any heavy water for some time and is dependent on stored reserves to supply its current fleet.