Hyderabad: The Kovvada nuclear power project will go ahead with the help of the Telugu Desam government despite agitations by locals and Left parties, according to the Atomic Energy Commission chairman R.K. Sinha. He said the state government will negotiate with locals and ensure the project is completed.
The AEC chairman also revealed that an insurance model was being worked out by the General Insurance Corporation of India (GIC) to cover risks by suppliers due to the liability clause. The DAE secretary also said that Public sector undertakings will soon be allowed to invest in nuclear power plants in the country with an amendment to the AE Act being proposed.
Mr Sinha said an amendment Bill will be placed in the next session of Parliament allowing PSUs to invest. Mr Sinha was speaking at the ECIL after flagging off the first consignment of the MACE gamma ray telescope built there for its operational site in Hanle near Ladakh. Asked about the Kovvada plant, Sinha said, “I don’t know of any hurdles there but the state government will negotiate and see the project goes ahead. We will do it the same way it was done in Jaitapur.”
He also explained that the amendment to the Atomic Energy Act will allow PSUs to invest in nuclear power plants. Currently, the Act allows only companies with a minimum 51 per cent government shareholding to invest. The Nuclear Power Corporation of India Limited (NPPCIL) is the only such company with the capability though others like Coal India and NTPC are willing to step in.
NPCIL doesn’t have to capital to fund the 20 per cent equity for larger future projects. “The Act needs minor tweaking. Companies like NTPC and Coal India have surplus money and they are willing to invest,” Sinha said.
The AEC Chairman also revealed that an insurance model was being worked out by the General Insurance Corporation of India (GIC) to cover risks by the suppliers. It can be recalled that there was a lot of tussle between suppliers and government over the liability clause. “We are trying to create an insurance pool so everyone has insurance to cover their risks. They have developed a model but it is still a work in progress,” Sinha said.
