nuclear-news

The ink had yet to dry on two separate agreements signed by France’s Areva with Larsen & Toubro and the Nuclear Power Corporation of India Limited for the French-designed 1650 MWe EPR reactor in Jaitapur, Maharashtra, when the French nuclear giant went into meltdown.

The agreements were signed with great fanfare during Prime Minister Narendra Modi’s visit to France on 10th April 2015 despite the fact that question marks on Areva’s future as a viable nuclear player had been piling up thick and fast.

In May, mere weeks after Modi’s visit, Areva announced colossal losses amounting to 4.8 billion euros (well above its capital base) and in June the French government, which owns 87% of the company, announced that Areva would be broken up, with its nuclear power arm, Areva NP, (including engineering, construction and design) being sold to another French energy giant, EDF. The French state has an 84.5% stake in EDF.

Politically driven

Why then did India persist in signing MoUs with a sinking ship? Surely Indian decision-makers were not unaware of Areva’s problems? And why is India insisting on buying nuclear technology that may be quietly buried in the near future, technology that has trebled in cost while providing no proof of performance, cost or economics of operation so far? What will be the fate of the agreements signed between Areva and L&T and Areva and NPCIL? Will they be automatically transferred to EDF and if so at what price?

Could India not have waited for clarity over Areva’s future instead of rushing into signing agreements with a company on the verge of dismemberment? Or is it that the MoUs were hurriedly pushed through so that Modi would have a big ticket announcement to make during his first European tour?……..

The hurry to enter into these agreements is baffling since it is unclear what the long-term future of the expensive flagship EPR will be once EDF takes full charge of Areva. Energy experts say the EPR’s design issues and costs dragged down Areva and EDF is unlikely to want a similar  fate for itself……….  http://www.dianuke.org/why-is-india-bent-on-joining-the-sinking-french-nuclear-ship/