India Could Get Billions from the U.S. To Build a Nuclear Reactor, Fortune, by Reuters SEPTEMBER 22, 2016 If a lending freeze doesn’t get in the way.
India is negotiating with U.S. Export-Import Bank for an $8-9 billion loan to finance six Westinghouse Electric nuclear reactors, two sources familiar with the talks said, although a lending freeze at the trade agency threatens progress.
The mega-project, the result of warming U.S.-India ties in recent years, could open up billions of dollars of further investment in India’s nuclear power sector, ……..
The Westinghouse deal, however, is contingent on financing and Ex-Im cannot approve loans of more than $10 million, owing to a row in the U.S. Congress over board appointments stemming from a campaign by conservatives to close the government lender……..
“Financing of the reactors is the critical piece; everything is down to this,” said one source involved in protracted negotiations to build the reactors in the south-eastern Indian state of Andhra Pradesh.
The source, requesting anonymity because of the sensitivity of the talks, said Indian negotiators and Ex-Im officials were trying to set the terms of the financial package in the hope that the freeze on the bank, affecting potential sales of several major U.S. companies, would lift soon.
Westinghouse is owned by Japan’s Toshiba Corp but is based in the United States……..
In addition to U.S. Ex-Im, India is also seeking funding from Japan and South Korea for the reactors to be built in Kovvada, two sources familiar with the talks said……..
While negotiators are unlikely to nail down a contract under Obama, who steps down in January, their challenge will be to come up with concessional financing terms that will make Westinghouse’s AP1000 reactors affordable.
Westinghouse did not respond to a request for comment, while a U.S. Ex-Im Bank spokeswoman declined to comment. An NPCIL official said the firm had nothing to say at this stage…….
ndia is also in talks with Russia to build four more reactors on top of the two already completed in Kudankulam in southern Tamil Nadu state, as well as with France’s EDF for the construction of six reactors of 1650 MW each in western India, which would be the world’s biggest nuclear power complex.
But talks with Westinghouse are more advanced than those with the French, with the two sides aiming to sign an early works agreement next month, sources familiar with their progress said.
A delegation from the U.S.-based firm visited New Delhi earlier this month to finalize the pact that would include the timeline and up-front costs such as land acquisition and site preparation, said a source familiar with the matter. http://fortune.com/2016/09/22/india-nuclear-power/
