Indian manufacturers target orders from revived nuclear power push

Walchandnagar Industries

24/12/2015 06:16

By Tommy Wilkes 
    NEW DELHI, Dec 24 (Reuters) - Indian manufacturers supplying 
parts to nuclear reactors say they are preparing for a jump in 
orders and revenues as New Delhi pushes ahead with a plan to 
build new plants across the country over the next few years.  
    Larsen & Toubro  LART.NS , Walchandnagar Industries 
 WALC.NS , state-run Bharat Heavy Electricals  BHEL.NS  and 
Godrej Group are among those who make parts for nuclear plants. 
They have suffered from years of stop-start orders, as India's 
nuclear programme stalled.  
    But there are now signs India's $150 billion dollar nuclear 
power programme is finally getting off the ground: the 
government expects to seal a contract with Westinghouse Electric 
Co LLC to build six nuclear reactors in the first half of next 
year, a senior government official told Reuters.  urn:newsml:reuters.com:*:nL3N14D15T 
    "We are very hopeful that before the end of the financial 
year, that the enquiries will start to come in," G.K. Pillai, 
chief executive officer of Walchandnagar said.  
    Like many smaller firms, Walchandnagar, which makes parts 
for reactors, is expected to feel the boost more than larger, 
more diversified rivals. It is already in talks with American, 
Russian and French nuclear power firms, Pillai said. 
    He aims to get 25 percent of its revenues from nuclear 
energy within three years, up from 15-18 percent today - if 
construction on new plants starts next year.  
    Godrej Group, which supplies mechanical equipment for 
nuclear fuel handling and positioning systems, is already 
expanding the manufacturing capacity of its nuclear business to 
target new tenders, billionaire chairman Adi Godrej said. He did 
not disclose the size of its investments. 
    "There were some issues but things are starting to change. 
There will be a huge opportunity," he told Reuters. 
    Uncertainty around India's rules covering liability faced by 
suppliers and builders in the event of an accident have cooled 
interest in nuclear, particularly for foreign players. 
    Prime Minister Narendra Modi's government, however, has made 
nuclear energy a priority and says it is tackling that hitch 
with an insurance pool. The final hurdle, ratification of the 
International Atomic Energy Agency's Convention on Supplementary 
Compensation for Nuclear Damage (CSC), is expected within weeks. 
    Analysts say they do see a boon - if one or two years away 
at least - with big players eventually seeing nuclear make up a 
larger portion of orders. But some also caution past efforts to 
build a nuclear business in India have struggled.   
    Industrial conglomerate Larsen, which has agreed to work 
with Westingouse on supplying parts, has a forging facility in 
the western state of Gujarat designed for nuclear plants. 
However, the facility has turned to other industries as nuclear 
orders dried up. 
    The company was not immediately available for comment. 
 
 (Reporting by Tommy Wilkes; Editing by Stephen Coates) 
 ((thomas.wilkes@thomsonreuters.com; +91 114 178 1030; Reuters 
Messaging: thomas.wilkes.thomsonreuters.com@reuters.net)) 
 
Keywords: INDIA NUCLEAR/COMPANIES