The N Deal

The N-deal, if passed, could open up new vistas for equipment makers for nuclear power plants Tapash Talukdar

WHILE the nuclear deal runs the risk of getting nuked, there exists a host of homegrown companies, which have a lot to gain from the controversial 123 Agreement. The pro-deal government has recommended a roadmap for meeting the country's energy requirement for the next 25 years and has set an ambitious target of 20,000 MWe (unit of nuclear power) by 2020 from the current 3,900 MWe. If all goes well, it will open up a sea of opportunities for various sectors involved in making equipment for nuclear power plants. India has plans to set up 15 plants over the next 20 years and so the pursuance with US to import more advanced nuclear power technology may better the standards of manufacturing for smaller players in future. India has a total installed power generation capacity of 1,44,564.97 MW. Out of this, 64.6% capacity is achieved through thermal fuel, and hydroelectric power contributes 10.5% while nuclear energy makes up for a mere 2.9%. Nuclear power is considered to be economically competitive at competitive tariffs. It is estimated that over 400 companies could get a chance to participate in building power plants directly or indirectly. Among them is Bangalore-based Avasarla Technologies Ltd that's gearing up to increase its production capacity multi-fold, and also readying for a possible JV with a US-based technology group. "Half of our product portfolio caters to nuclear power plants requirements. If this deal happens, we are expecting significant business orders once the government decides upon the agreement," says D Raghunath, director, Avasarla Technologies. The Rs 160-crore company has supplied coolant channel assembly, fuel transfer equipment, reactivity mechanisms and calandria—a vessel that holds the uranium in the reactor core—to some of the nuclear power plants in the past. Further, the company is also adding few more products like fuel missions, radiation shielding windows, plugs to meet future requirements. "This will boost the indigenisation of technology for players like us," adds Raghunath. "This deal will bring exciting opportunities for us. So, we are drawing up plans to enhance our facilities in getting ready for the new opportunities for major supply orders," says SS Gangavati, president, strategic planning and market research at Walchandnagar Industries. The engineering major has supplied critical components like the calandria to most of the nuclear power plants in India. The company has been waiting for the government to decide upon the classification of the orders for supplying the parts. Gangavati added that the company is ready for the production facilities and if requires, it may expand the capacity to meet the additional demand. And as they are getting ready for it, they will provide opportunities for small players by way of sub-contracting to manufacture small parts or spares. Rajkot-based Kiwi Pumps is in full swing to talk with Walchandnagar Industries, L&T and BHEL for making spares and small components. Jayesh B of Kiwi Pumps says, "The deal may bring orders for us from the giants. We will consult with specialists in manufacturing the best quality for the nuclear plants." The company has been exporting some casting parts to power equipment majors for the last few years. Says D Vidyasagar, MD of Hyderabad-based SEC Industries, "This is a great opportunity for us, particularly since we indirectly engaged with government nuclear bodies for fabrication work." The company expects to scale it up to the volume and sophistication levels required by the plans that are going to come into operation post-deal. The company makes equipment for some of the most sophisticated weapons, including the Prithvi missile.