Russia's state-owned nuclear corporation plans to set up joint ventures with Indian companies to manufacture power generation equipment.
Atomenergomash (AEM), an affiliated company of the Atomic Energy Corporation Rosatom, is to launch two JVs in India before the end of the current year, the company head was quoted as saying here.
Atomenergomash Director Vladimir Kashchenko said his company was in talks with Walchandnagar Industries (WIL), Larsen & Toubro ltd, and DM Corporation.
“These companies have experience, technological base, and engineering and construction potential,” Mr. Kashchenko told the RBC-Daily. “They are familiar with the technology and possess the necessary resource. Producers of turbines and boilers are among the candidates.”
Rosatom is finishing the construction of two nuclear power reactors of the Kudankulam Nuclear Power Plant in Tamil Nadu. In March 2010 Russia and India signed a contract for the construction of a third and forth reactors for the Kudankulam NPP.
With its thrust on developing an indigenous nuclear energy programme, India insists on a 60-per-cent indigenous component in foreign-built nuclear power plants. AEM also views India as a bridgehead for entering other Asian markets where Rosatom plans to build NPPs — Vietnam, Bangladesh, and China.
“We see India as a platform for regional localisation,” Mr. Kashchenko said. “All the plants we are looking at are located on the western coast where the workforce and infrastructure are concentrated.”
The AEM head said the Indian JVs may also export its equipment to South America and Africa.
According to Russian experts, it costs 15 per cent less to set up production in India than in Russia thanks to cheaper labour, which accounts for 25 to 30 per cent of the overall production costs.