Mumbai: India's nuclear deal has triggered off a chain reactions with a number of companies like Reliance Power, Tata Power, GMR and NTPC looking to enter the area. Companies like L&T, HCC and BHEL also stand to benefit by the deal and all of this has set off a rally of these stocks in the markets today.
India Inc was relieved after the United Progressive Alliance (UPA) government won the trust vote. It has slew of plans to tap the nuclear opportunity. At the same time, private companies are also looking forward to benefit from the nuke deal.
“We know nuclear deal is important for L&T in the long term. More important for energy security of the country,” says AM Naik CMD, Larsen & Tourbo (L&T).
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 deal will allow foreign co-operation to the Indian nuclear programme. This will help India in expanding its nuclear power portfolio.
“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” says Ajit Gulabchand CMD, HCC.
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.
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.
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