Nuclear fallout
Size of the opportunity:
Estimates vary, but it could be
$40 billion (Rs 1.72 lakh crore) over the next 15 year as India plans to add a gargantuan 40.00 MW of the nuclear power by 2020.
Who will benefit?
Initially, foreign companies such as general Electic, Areva, Rosatom, and Westinghouse
NPCIL. India's lone nuclear operator, and the Jindal Group may also enter the sector. The cost advantage that Indian manufacturing is renowned for will deliver results in the nuclear arena.
Collateral benefits
Nuclear-related dual-use technologies-which can be used for both civilian and military purpose -will now be available to India from any country that wants to sell it. These include items such as precision measuring device and machining centers. The latter can also be used to manufacture automotive components and other civilian device, but they can also be used to produce components for centrifuge separation device for uranium enrichment. Dual-use technologies are needed by a wide rang of industries.
Deal impact
First level of impact
India gets the right to source uranium fuel for its existing plans from the NSG countries. India can also now access uranium exploration and mixing technologies. Nuclear equipment orders worth $14 billion (Rs 60.200 crore) are already in the offing. Moreover, India will also look at acquiring uranium assets aboard.
Second Level of Impact
Joint ventures between various players will perk up as Indian companies get ready for a slice of the nuclear pie. In may BHEL formed a joint ventures with NPCIL for manufacturing nuclear equipment.
Third level of impact
For Indian private companies to own and operate nuclear rectors, the Atomic Energy act (1962) needs to be amended. Some 40 Indian companies have formed a pressure for the amendment..
US companies such as general electric will have to wait for the nod from the US Congress to start doing business with India. Additionally , most foreign companies want a Nuclear civil Liability Law before investing in India, as an accident can cost them billion of dollars in damages and even wipe them out.
