Agreement between Areva (France) and NPCIL (India) - Scope and Advantages

Agreement between Areva (France) and NPCIL (India) – Scope and Advantages

Question - Civil nuclear energy is the way forward for development which is an “article of faith” for the NDA government. Discuss the recent agreements between AREVA and NPCIL as well as L&T in this context.

Agreement between NPCIL and Areva

• France’s AREVA, a French company has recently entered into an agreement with Nuclear Power Corporation of India Ltd, following the Indian PM’s recent visit to France

• NPCIL is a PSU under the Department of Atomic Energy, Government of India.

• The two have entered into a pre-engineering agreement/PEA in association with the proposed Jaitapur Nuclear Power Project

• The agreement envisages the establishment of two EPR/Evolutional Pressurised Reactors of 1650 MWe in partnership with France

• PEA is concerned with assessment of license ability of the EPR project as per the following:
- Laws
- Codes
- Guides
- Regulations
- Manuals
- Practices
- General Acceptability
- Comprehensive Examination of EPR Technology

• PEA seeks to enable NPCIL to obtain details of the EPR technology through a detailed safety assessment of the plant and the licensing process with AERB/Atomic Energy Regulatory Board when the implementation process for the Jaitapur Nuclear Power Project is set in motion

• PEA will also explore more cost efficient and effective ways for implementation of the project

• It will also maximise the scope of localisation of varied components of the power plant with respect to improving the economy of the project and domestic capabilities in accordance with the Make in India project

• This agreement aims at saving time and money for the Jaitapur Nuclear Power Project

• The agreement involves the use of Light Water Reactor/LWR Technology and boosting India’s capability in this region
• The signing of the PEA with AREVA reflects India’s growing cooperation in the field of civil nuclear energy with France

Agreement Between L&T and AREVA

• Department of Atomic Energy also welcomed the Memorandum of Understanding between Indian company L&T and AREVA for localisation of EPR nuclear reactors in India boosting LWR technology

• The collaboration envisages a transfer of technology for critical components of the Jaitapur Nuclear Power Project which are either earlier not accessible or have to be imported

• Partnership aims at enhancing the manufacturing capabilities of India through cutting edge technology in the nuclear power sector and other allied sectors such as infrastructure and petrochemicals as well

• MoU is in line with the Make In India campaign aimed at boosting indigenous technology and manufacturing capabilities of industries in India

• This agreement is a major step forward for L&T in the field of pressurised water reactor technology

• AREVA will transfer technology for improving capabilities of L&T Special Steels and Heavy Forgings, a JV with NPCIL

Facts and Stats

About AREVA

• AREVA is a nuclear power company with headquarters in Paris, France

• The company is a global leader in nuclear power and covers every stage of the nuclear fuel cycle

• It also has expertise in the field of renewable energy

• AREVA has 41,847 employees

• The group reported consolidated sales revenue of 8,336 billion euros last year which is a rise of 7.2%

About NPCIL

• NPCIL is a PSU under the Department of Atomic Energy which was registered as a firm under the Companies Act 1956 in the month of September 1987

• It aims to operate atomic power plants and implement such projects in the field of civil nuclear energy

• It also has equity participation in Bhavini, A DAE PSU which implements fast breeders reactors programmes and projects in the nation