Nuke pact to lead to orders only after 12-18 mnths:Walchandnagar

During Prime Minister Narendra Modi's trip to the country, the US and India announced yesterday the latter had been made a member of the 34-member Missile Technology Control Regime (MTCR), a move that would boost its entry prospects to the Nuclear Suppliers Group (NSG).

The announcement augments a "feeling of hope for Indian manufacturers" of nuclear equipment, said GK Pillai, MD and CEO of Walchandnagar Industries.

"The nuclear business had come to a standstill after the Fukushima disaster in Japan. This will pave the way for setting up American nuclear plants in the country," Pillai said.

He, however, added that finer details of the deal were not yet known and that he expects it to result in tangible activity only after 12-18 months.Below is the verbatim transcript of GK Pillai's interview with Latha Venkatesh and Sonia Shenoy on CNBC-TV18.Latha: This agreement has just been signed, the political agreement between India and the US. When will this mean business, will it mean business for you?A: The details are not yet known full but definitely it augments a feeling of positivity among the Indian manufacturers who are into the nuclear equipment field because for a long time, since 2010 after the Fukishima incident took place, the nuclear business has almost come to a standstill. So this important change where the Prime Minister and the US President has signed the setting up of American nuclear plants in India will definitely be a big boost to all the nuclear equipment industries in India. We at Walchandnagar are also equally thrilled about that.Sonia: When you say a big boost can you give us any kind of ballpark estimates as to what the industry could earn in terms of revenues? Overall it is great for churning more jobs, promoting investment, trade etc but for the nuclear industry itself, what kind of money are we looking at?A: Final details are not yet known, what type of collaboration is done. For example, when the Kudankulam III and IV was signed, it meant that there could be some business for Indian manufacturers but ultimately, it turned out that 100 percent it is imported from Russia.So, similarly the details of this agreement is not yet known but at the same time, it gives a feeling that yes, it is not the immediate two reactors, maybe the remaining four reactors there could be some more indigenous component into the reactors or the nuclear power plant, which is being put. So, if you ask me a number, I don’t think I will be in a position to give you the number today but if you ask me a feeling, I will definitely say there is a feeling of positivity among the industries that this will open the door. Particularly so, with regards to the US companies has not been at all supporting the Indian nuclear business for a very long time. So this definitely is a beginning. So we always feel that at least the beginning has happened otherwise, it would happen in a closed door for a very long time.Latha: Even if we do get anything by way of a size or an order from you, can you give us an idea of by when? Normally what is the lead time for anything to take off the ground?A: Basically once we have the details of this, it should take anywhere between 12 and 18 months.