India is preparing to restructure its $20 billion, six-nuclear-reactor deal with bankrupt American nuclear energy icon Westinghouse Electric.The American company was to build six nuclear reactors in the southern Indian state of Andhra Pradesh at Kovvada, according to the original deal.
Westinghouse has said it plans to get out of the construction business, and will move into a design and consultation role to provide technology for the nuclear reactors, with construction in India handled by an Indian partner.
Sources told The Times of India: “A new business model is being worked out and things are being renegotiated.”
Westinghouse had negotiated construction of the nuclear reactors with Nuclear Power Corporation of India (NPCIL), Kallanish Energy reports.
In 2015, Indian Prime Minister Narendra Modi and then President Obama said both parties intended to finalize supply contracts for the nuclear reactors by June 2017. However, with Westinghouse filing for Chapter 11 bankruptcy on March 29, Indian negotiators became hesitant in moving forward with the deal.
After the recent Modi-President Trump meeting, the White House released a statement which said both countries are committed to nuclear cooperation, specifically via a contract for six Westinghouse Electric AP-1000 nuclear reactors to be built in Andhra Pradesh.
Financing of the nuclear project is expected to come from the U.S. Exim Bank. The six AP-1000 reactors each will produce 1,200 megawatts of electricity.
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