Nuclear Power - India - Sample


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The Indo-US nuclear deal and waiver granted to India from the Nuclear Suppliers Group (NSG) has opened the country to global nuclear commerce. With access to global technological advances and uranium fuel supplies, the country renewed an ambitious nuclear energy programme creating a huge demand for equipment and services.

The report shows the current size and share of nuclear energy as well as short-term and long-term targets indicating a demand ranging anywhere between USD 80 bn to USD 200 bn over the next twenty years. A detailed table shows the recent market activity including recent deals, opportunities being explored, and investments by foreign players, domestic private and government organizations. The major issues and challenges facing the domestic market including the possible role of Indian companies are also addressed.

It is essential to know the structure of nuclear energy control and the role of different government organizations. The report includes a brief profile of major government organizations. Additionally, a list of future projects - planned and under construction is also provided.

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Nuclear Power - India - Sample

  1. 1. Nuclear Power - India February 2009
  2. 2. Executive Summary SAMPLE <ul><ul><li>Government monopoly in nuclear power generation, mining and plant installation </li></ul></ul><ul><ul><li>Nuclear power generation cost is highest in comparison to other sources of energy </li></ul></ul><ul><ul><li>Dependence on foreign sources for uranium fuel supplies </li></ul></ul><ul><ul><li>Limited role for domestic companies due to lack of expertise </li></ul></ul>Market Issues & Challenges Future Outlook <ul><ul><li>Installed capacity in 2008: X MWe; Accounts for a% of total power capacity </li></ul></ul><ul><ul><li>Estimated capacity in 2012: Y MWe; Target capacity by 20--: Z GW </li></ul></ul><ul><ul><li>Government has the sole right to nuclear power generation via A </li></ul></ul><ul><ul><li>Indo-US nuclear deal and NSG waiver expected to boost nuclear commerce </li></ul></ul><ul><ul><li>An estimated business potential of USD X-Y bn </li></ul></ul><ul><ul><li>Targeted capacity is A GW by 20-- </li></ul></ul><ul><ul><li>Strong opportunities in manufacturing reactors, components as well as related areas such as consulting, engineering & construction etc. </li></ul></ul><ul><ul><li>C reactors are under construction with a total capacity of B MWe </li></ul></ul><ul><ul><li>High level of activity with domestic and foreign firms signing or evaluating partnerships </li></ul></ul><ul><ul><li>Large domestic engineering and infrastructure companies showing active interest </li></ul></ul><ul><ul><ul><li>E.g U,V,W,X </li></ul></ul></ul><ul><ul><li>Public sector enterprises also actively pursuing partnerships </li></ul></ul><ul><ul><li>Large investment outlays being made to capitalize on government’s ambitious plan </li></ul></ul>Activity
  3. 3. <ul><li>Market Overview </li></ul><ul><li>Market Activity </li></ul><ul><li>Issues & Challenges </li></ul><ul><li>Government Organizations </li></ul><ul><li>Future Projects </li></ul>
  4. 4. Nuclear energy currently accounts for a small share of total power generation with installed capacity of X GW in 2008 <ul><li>The Government has the sole right to nuclear power generation via NPCIL </li></ul><ul><li>Capacity in 2008 stood at B MW compared to original target of C MW set in the Xth 5-year plan ending in 2007 </li></ul><ul><li>Nuclear power accounts for a miniscule share of total power generated with the bulk accounted by coal and hydro projects </li></ul>SAMPLE Source: Installed Nuclear Power Capacity Z 2008 a% MWe V 2004 W 2005 X 2006 Y 2007 Regional Distribution of Nuclear Power e% Nuclear f% Coal a% Gas b% Diesel c% Hydro d% RES Share of Total Capacity b% South c% West a% North Overview
  5. 5. The Atomic Energy Commission (AEC) is solely responsible for managing nuclear power in India SAMPLE Atomic Energy Commission (AEC) Nuclear Power Corporation of India Ltd Bhartiya Nabhikiya Vidyut Nigam Ltd Electronics Corporation of India Ltd Uranium Corporation of India Executing projects and operating nuclear power plants for electricity generation Installation of fast reactors Reactor control and implementation Mining and processing of nuclear fuel Atomic Energy Regulatory Board (AERB) Department of Atomic Energy (DAE) Heavy Water Board Production of heavy water used as a moderator and coolant in reactors, operates 6 plants Nuclear Fuel Complex Supply of nuclear fuel bundles and reactor core components Source:
  6. 6. Domestic private players are capitalizing on the growth prospects through large investments and joint ventures SAMPLE Source: Recent Deals (1/2) <ul><li>U: Formed a joint venture, in 20--, with V primarily for manufacturing state-of-the-art power plant equipment in India which is expected to extend to nuclear applications </li></ul><ul><li>V: It signed an MOU with V to set up a manufacturing facility of heavy forges. The plant is expected to be operational by 20-- </li></ul>Y <ul><li>A JV: Entered into a joint venture with A to focus on nuclear power engineering </li></ul>W <ul><li>Y: It signed an MOU with Y towards providing advisory services to players with regard to investment opportunities available in the market </li></ul>Z <ul><li>B: In Jan 2009, an agreement was signed with B to build its Z nuclear reactors. </li></ul><ul><ul><li>This would enable C to utilize indigenous capabilities for the construction of nuclear power plants including supply of reactor equipment and systems, valves, electrical & instrumentation products and fabrication of structural, piping and equipment modules for B V plants </li></ul></ul><ul><li>C: Another agreement was signed with D to manufacture W reactors at their facility in Z, Gujarat </li></ul>X Partnerships and Investments Company
  7. 7. Company A SAMPLE Overview Financial Performance Source: 100% 100% a% b% c% d% e% f% Ancillary schemes Modifications in operating stations Kundalam 1&2 New projects Kaiga 3&4 RAPP 5&6 u% v% w% x% y% z% a% Interest Depreciation Profit Fuel charges Heavy water charges Repair & maintenance Other operating expenses Future Outlook <ul><li>Operating the atomic power stations </li></ul><ul><ul><li>Currently operates U nuclear power plants with a combined capacity of V We with W under construction adding X MWe </li></ul></ul><ul><li>Emphasis on development of nuclear power technology as an economical source of electrical energy </li></ul><ul><li>Generated Y bn units of electricity under the 10th Five Year Plan exceeding the target by a% </li></ul>Capital Expenditure (2007-08) Revenue distribution (2007-08) <ul><li>Targeted capacity addition of X MW by 20-- and projected capacity of Y GW by 20-- </li></ul><ul><li>Construction of B units of C MW PHWRs and U units of V MWe LWRs with option to import ancillary products </li></ul><ul><li>Developing indigenous capability by initiating manufacturing facilities in partnership with leading industry partners has been initiated </li></ul>X 2005-06 Y 2006-07 Z 2007-08 Profit Total Income Profit INR mn Revenue INR mn
  8. 8. Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Nuclear Power report is a part of Research on India’s Power Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Natasha Mehta, CFA Phone: +65 8448 0449 E-Mail: [email_address] Gagan Uppal Phone: +91 98364 71499 E-Mail: [email_address] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on