New Delhi: Indian Oil Corp, the nation`s
largest oil firm, on Monday said it will take 26-49 percent stake
in the Rs 10,000-crore nuclear power plant it will set up in
collaboration with the Nuclear Power Corp of India Ltd.
"We have signed a memorandum of understanding (MoU)for
setting up at least one 1,000 MW nuclear power power plant
with NPCIL," IOC Director (Business Development) B M Bansal
told reporters here.
NPCIL will be the operator and take at least 51 percent
stake while IOC is contemplating taking either 49 percent or
26 percent interest, he said.
The two firms, he said, will in next six months decide on
the site, fuel and the project structure.
"Nuclear power gives us a good opportunity to become an
integrated energy firm," he said. "The nuclear power plant
will cost Rs 8 to 10 crore per megawatt but the good thing is
that we get 15.5 percent return on investment and cost of
electricity generation is low - about Rs 3-4 per unit.
"We want to gain experience and may be at a future date
we may set up nuclear plants on our own (when the sector is
opened up)," Bansal said.
IOC may invest Rs 1,000 to Rs 1,500 crore as equity in
the project with NPCIL, he said.
Techno-commercial modalities, including source of nuclear
fuel and site would be decided over the next six months.
"We have requested NPCIL to involve us in an approved
project so that the project is constructed by 2014," he said,
adding it may take 6-7 years to build a project at a site
thats already not approved.
IOC signed the MoU with NPCIL on November 4 to venture
into nuclear power generation.
Bansal said the two firms will over the next six months
identify the project site, source of fuel and project
"The project will cost about Rs 10,000 crore and will be
funded in 70:30 debt-equity ratio," he added.