Indian firm to take over construction on Westinghouse nuclear project

Construction work on a $20bn nuclear power project in India is likely to be transferred from US-based Westinghouse to an Indian partner in hopes of saving a stalled deal. à‚ 

In 2008, Westinghouse agreed with the Nuclear Power Corporation of India (NPCIL) to build six 1208 MW AP-1000 reactors in Kovvada in Andhra Pradesh state. But the deal is reportedly being reconsidered after Westinghouse’s bankruptcy in March and its exit from the nuclear construction business threatened to scuttle the project.à‚ 

The Indian company which will undertake the construction work has not yet been named.à‚ 

Project financing from the US ExIm Bank reportedly remains in place, although another reported delay factor is the lack of a functional reference plant, which is required by India’s nuclear regulator to obtain permission to proceed.à‚ 

Paperwork for the deal was supposed to have been finalized this year after Prime Minister Narendra Modi and then-US president Barack Obama hashed out an agreement on civil nuclear liability in 2015 with the creation of a $250m insurance pool for US-based component suppliers. à‚ à‚ 

According to media reports, the Kovvada project is believed to have been discussed during Modi’s recent visit to the US.à‚ 

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