The Hindu Business Line : Nuclear Power Corpn plans Rs 4,800-cr investment

NUCLEAR Power Corporation of India Ltd (NPCIL) plans to invest Rs 4,848 crore in the coming financial year 2004-05 — the highest-ever investments made by the corporation in one year.

Buoyed by the ongoing power sector reforms and being conscious of increasing competition, the corporation has embarked on restructuring and rethinking its growth strategies.

"NPCIL's investments are increasing substantially because of higher growth targets. We are aware that the opening up of India's power sector would mean our tariff has to compare with that offered by various power companies — both public and private sector," said Mr S.A. Bohra, Executive Director, NPCIL told Business Line. The company had invested around Rs 2,390 crore in 2002-03 and Rs 2,297 crore in 2002-01.

It has lined up ambitious targets of adding 1,300-MW nuclear power capacity by December 2007 by the end of the Tenth Five-Year Plan. Another 4,660-MW will be added by December 2012.

The Government has set a national target of adding 20,000-MW by 2020 under its Vision 2020 programme.

NPCIL, which has a 2:1 debt to equity ratio, initially borrowed interest-free funds from the Union Government. Even now, a part of debt comes from the Government kitty. Only recently, the company had approached the markets for raising funds. But the future may see minimal Government funding.

"We are a triple `A' rated company with a very good track record when it comes to repayment of loans. We are hoping to become independent of Government borrowings after the 11th Five-Year Plan and may follow the model of navratna companies," Mr Bohra said.

On the technology front, the company has used indigenously developed nuclear fission technology using the pressurised heavy water reactors. It had recently entered an agreement with the Russian Federation for using light water reactors. The company is also in talks with other countries including France and the US for bringing in other efficient technologies.

NPCIL is operating 14 nuclear power stations in the country. Of the new projects being implemented, commercial operation of Tarapore unit 4 is likely to be completed three to four months ahead of schedule in September, said Mr Bohra.