More power to nuke deal!

Katya Naidu, CNBC-TV18

UPA or the United Progressive Allliance's winning combination has made the power sector in India particularly happy. After coal and gas based power plants, the Indian power sector will also have nuclear power projects to look forward to.

India's nuclear deal has triggered off a chain reaction with a number of companies looking to enter the area like Reliance Power, Tata Power, GMR and NTPC. Companies like L&T, HCC and BHEL also stand to benefit by the deal. And this has triggered a rally of these stocks in the markets today.

India Inc has a slew of plans to tap the nuclear opportunity.

Ajit Gulabchand, CMD, HCC, said, "It opens the doors for big corporations and opens a whole new era of technological co-operation with not only USA, but also rest of the world. Any company would like it particularly HCC."

AM Naik, CMD, L&T, said, "We know nuclear deal is important for L&T in the long term. More important for energy security of the country."

However, as of now private sector is not allowed to enter the nuclear power sector and would need an amendment of the Atomic Energy Act. But, signing of the deal will allow foreign co-operation to the Indian nuclear programme, which will let India expand its nuclear power portfolio.

With foreign co-operation, India will receive technology of light water reactors which is unavailable now, equipment in the form of reactors and more importantly fuel for the reactors which is Uranium.

Also, as a direct impact, public sector utility company Nuclear Power Corporation, will be able to carry on its 11th Five-Year plan target of adding yet another 10,000 mega watts of power, in addition to its indigenous programme which will expand from 4000 mega watts to 10,000 mega watts by 2010.