India and Russia on Tuesday signed a protocol for Russian funding for units III and IV at the Kudankulam Nuclear Power Project in Tamil Nadu. Russia will extend export credit amounting to $3.4 billion. Signed by India’s Department of Atomic Energy Special Secretary A.P. Joshi and Russian Deputy Finance Minister S.A. Storchak, the credit is repayable 14 years after the commencement of the work on the two units. 85 per cent funding of the nuclear projects’ works, supplies and services is to be provided by Russian companies
The total investment in these two new units is expected to be $6.4 billion so there is about $3 billion of investment open for countries other than Russia. The assumption is that the Indian government will fund this portion. The project involves 1,000 MW reactors of the VVER-1000 model being constructed by the Nuclear Power Corporation of India Limited (NPCIL) and Russia’s Atomstroyexport company, a Rosatom subsidiary.