NEW DELHI: French power equipment major Areva plans to join hands with Indian firms for production of nuclear power equipment in the country.
The company, which is positive about a favourable outcome of Indo-US nuclear deal, has already initiated talks with potential partners.
“We are negotiating with Indian companies for a possible joint production of nuclear power equipment in India. We are looking for a long-term partnership here,” Areva president Anne Lauvergeon said. The Areva president is in the Capital as part of President Nicolas Sarkozy’s delegation.
Speaking to media persons on the sidelines of an India-France Economic Conference, she said, “We are very optimistic about the nuclear deal getting cleared at international level”.
It is understood that public sector power equipment major BHEL has shown interest in joining hands with the French firm. Ms Lauvergeon, however, declined to give names of the companies with which Areva is talking for a possible joint venture. It is said that the company is also in talks with Reliance Energy and Tata Power, both of which have expressed their desire to enter nuclear power business.
Bullish about its Indian transmission and distribution business, the Areva president said, “Revenue from Indian business contributes 10% to the global T&D business of Areva. Indian revenue has been growing at 20% growth. We expect to grow at the same rate for the next couple of years in India.”
Areva T&D, the Indian subsidiary of Areva France, has emerged as the number two company in this business in the country.
“We have recently been awarded a contract in Qatar, part of the equipment for which will be supplied from India, she said. Areva T&D India has eight existing factories manufacturing T&D equipment in the country. It is putting up three more plants at Baroda, Padappai (near Chennai) and Hosur with an investment of Rs 400 crore. The company has also bagged orders worth Rs 500 crore from four large Indian power companies including Power Grid Corporation, NTPC, Reliance Energy and Tata Power for supplying equipment required for transmission projects," a company source said.
The Rs 100-crore project with PGCIL involves supply of equipment to improve sub-transmission grid in the state of Bihar.
The NTPC joint venture company Aravali Power Company has awarded a Rs 129-crore power transformer package to Areva T&D for Indira Gandhi Super Thermal Power Project at Jhajjar.
It would also supply equipment for small transmission projects being undertaken by Tata Power and transmission arm of Reliance ADAG group.
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