When the MOU was signed in 1988, Russia offered reasonable rates and soft loans. Now Russia has agreed to give us state credit up to $2,600 million at an interest of 4 per cent per annum. The utilised amount will be repayable in 12 equal annual instalments a year after the commissioning date. This is a dream situation and anyone who offers this is welcome too.
Russian plants can churn out 1,000 MW a year. They have the manpower, infrastructure and only lack working capital. They are therefore longing for orders and business. Imported technology should be viewed as an add-on which will strengthen our nuclear base and sustain the work being done on indigenous technology. The demand for power stations has saturated in the West. The future energy demand is here. And believe me, if we sign the NPT, even Americans will come with folded hands and offer funding and technology.
The VVER reactors figure in the IAEA list of advanced designs. The design, features and concept is the same as the Pressurised Water Reactors made in the US.
Ours is an energy-importing country. And as per the inter-state regulations, the commitment from Russia to provide fuel and spare parts for the entire life of the plant has immunity from domestic laws and international obligations. Hence, although Russia has signed the NPT, they cannot be pressurised into backing out. Enriched uranium is not manufactured in India, but we have the capability to fabricate the fuel.
The state electricity boards owe us over Rs 1,993 crore. At the same time, we have not been allowed to raise tariffs. Yes, we are facing a cash crunch. But the prime minister on his May 29 visit assured us that all initial support will be given. The state governments have shown interest but not made firm commitments.
Besides France, we will be the only country to have a nuclear reactor with a double containment -- a feature absent at Chernobyl. The chances of any mishap are 0.0000001 per cent. But Chernobyl did happen and we shouldn't forget that. Nuclear plants have a life of 25 years and the design life is 40 years. But often, they get extended once the residual life is checked.
It would be around Rs 9,000 crore and not Rs 17,000 crore as is being reported. As of today, the total amount is not available. In the detailed project report, Russia will quote the total cost. If it is too expensive, we will not buy it.
A normal 2 paise per unit will help build up a fund for decommissioning. But this is an evolving concept as no reactor in the world, except the experimental ones, has completed its lifespan.
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