Jaitapur Nuclear Power Project

Context: The French company EDF and Nuclear Power Corporation of India Limited (NPCIL) are working together to take the Jaitapur project off the ground.
Background

• EDF, a French corporation, recently submitted a binding offer for the Jaitapur project to NPCIL.
• This initiative is an important aspect of India’s and France’s strategic cooperation.

Significance of the Project for India

• The Jaitapur project would be the most powerful nuclear power plant in the world.
• Six cutting-edge European Pressurised Water(EPR) Reactors with a total installed capacity of 9.6 GWe will generate low-carbon electricity.
• Electricity would be provided to seven crore households.
• Thousands of local employment would be created, directly benefiting Maharashtra.
• This project will represent India and France’s strong relationship and commitment to a low-carbon future.

What are the risks associated with the project?

• Cost: Electricity from the Jaitapur project will be more expensive than many other sources of electricity, including solar and wind power.
• It was estimated in 2013 that first-year tariffs from the Jaitapur project would be around Rs. 15 per kilowatt-hour.
• This figure must be revised upwards to account for the construction experience with EPRs over the past five years.
• While nuclear costs have been rising, other low-carbon sources of electricity, especially solar energy, have become cheaper.
• Delay:  Across the world, EPRs have experienced delays and cost increases and has also locked consumers into a risky and expensive project with uncertain strategic and economic benefits.
• Debt:  Power-generating capacity in India has grown faster than demand causing projects to run into financial difficulties.

Advantages of French Investment in India

• In line with Government Initiatives: The funds will be used to support the Make in India and Skill India programmes. Through the Government of India’s Smart Cities programme, the French Development Agency (FDA) is also working to promote clean transportation in India.
• Boost to Industrial Sector: India and France hope to urge India’s industrial sector to participate actively in the project for the industrial advantage. In this spirit, France is implementing a plan based on extensive research to find Indian firms that may be chosen as suppliers.
• Contribution in Electric Vehicles: The French companies present in the Indian market are important in terms of production of electrical batteries.
• Boost to Diverse Sectors: France encourages contributions to ongoing transformation in the areas of environmental transition, manufacturing facility modernization, and technical innovation. Renewable energy, agro-business, and healthcare are additional areas of focus for France.

Additional Facts