Indian Oil Corporation (IOC) may invest upto 26 percent of $2.7 billion to expand the Rajasthan Atomic Power Stations of India’s Nuclear Power Corporation Ltd (NPCIL). At present Indian law does not permit private sector investment into Atomic Energy. NPCIL is 100% owned by the Indian government via its Department of Atomic Energy. IOC is largely a public sector undertaking, under the Ministry of Petroleum.
In November 2009, IOC and NPCIL signed a memorandum of understanding to jointly construct nuclear power plants in India. Last month NPCIL signed an agreement with Power Finance Corporation (PFC) to “facilitate NPCIL’s large capacity addition program.” Under the 28 October agreement PFC intends to provide a combination of debt financing, equity financing and consultancy services.
Similar understanding have been signed with the National Thermal Power Corporation and the India Expert expects will be signed by the likes of BHEL, and other public sector entities; this seems to be primarily a financing process for the equity portion of India’s massive nuclear energy expansion. NPCIL will retain operational and safety control of all such plants.