French nuclear giant Areva has won a contract to sell two nuclear reactors to India following talks between French President Nicolas Sarkozy and Indian Prime Minister Manmohan Singh.
The agreement foresees the construction of two European pressurized water reactors for an estimated $10 billion at Jaitapur in the western state of Maharashtra. Areva will supply the reactors with fuel for 25 years, the company said in a statement released Monday.
The deal was signed in New Delhi by officials from Areva and the Nuclear Power Corp. of India in the presence of Singh and Sarkozy. The French president traveled to India with a flock of business leaders from the energy and defense industries.
The world's second-largest nuclear energy producer after the United States, France hopes to benefit from a worldwide revival for nuclear power that experiences its strongest growth in the quickly growing economies.
As the populations of India and China grow rapidly, so does power demand. Across Europe, nations including Britain and several in Central and Eastern Europe are planning new reactors to increase energy security and reduce carbon dioxide emissions in their power mix.
France's third-generation EPR, developed by Areva and utility EDF, is considered one of the most advanced in the world. However, models under construction in Finland and France have been plagued by costly construction delays.
The deal with India is a major success for Areva after it lost a $20 billion deal last year to supply four reactors to United Arab Emirates to a South Korean firm. Sarkozy afterward strongly lobbied for French-made reactors. In a first success, France and Kuwait in April signed an agreement to develop nuclear energy in the Persian Gulf country.
The Indian deal seems much more advanced. Site preparation work, approval work with the Indian nuclear safety authority and the detailed technical configuration of the first EPR will start early next year, Areva said.
Areva Chief Executive Officer Anne Lauvergeon called the deal "historic."
"Areva's integrated model and technological edge has made the difference yet again, funding a strategic position in one of the world's most dynamic market," she said in a statement.
Sarkozy meanwhile continues his tour of India. He is expected to visit Mumbai, India's financial capital, before returning to France Tuesday.
The agreement foresees the construction of two European pressurized water reactors for an estimated $10 billion at Jaitapur in the western state of Maharashtra. Areva will supply the reactors with fuel for 25 years, the company said in a statement released Monday.
The deal was signed in New Delhi by officials from Areva and the Nuclear Power Corp. of India in the presence of Singh and Sarkozy. The French president traveled to India with a flock of business leaders from the energy and defense industries.
The world's second-largest nuclear energy producer after the United States, France hopes to benefit from a worldwide revival for nuclear power that experiences its strongest growth in the quickly growing economies.
As the populations of India and China grow rapidly, so does power demand. Across Europe, nations including Britain and several in Central and Eastern Europe are planning new reactors to increase energy security and reduce carbon dioxide emissions in their power mix.
France's third-generation EPR, developed by Areva and utility EDF, is considered one of the most advanced in the world. However, models under construction in Finland and France have been plagued by costly construction delays.
The deal with India is a major success for Areva after it lost a $20 billion deal last year to supply four reactors to United Arab Emirates to a South Korean firm. Sarkozy afterward strongly lobbied for French-made reactors. In a first success, France and Kuwait in April signed an agreement to develop nuclear energy in the Persian Gulf country.
The Indian deal seems much more advanced. Site preparation work, approval work with the Indian nuclear safety authority and the detailed technical configuration of the first EPR will start early next year, Areva said.
Areva Chief Executive Officer Anne Lauvergeon called the deal "historic."
"Areva's integrated model and technological edge has made the difference yet again, funding a strategic position in one of the world's most dynamic market," she said in a statement.
Sarkozy meanwhile continues his tour of India. He is expected to visit Mumbai, India's financial capital, before returning to France Tuesday.
