India just announced a $9 billion nuclear power deal with France. India’s Nuclear Power Corporation (NPCIL) currently has 17 atomic plants which only produce 3% of India’s power. That will change. AREVA, the French national nuclear power company, just closed the $9 billion deal with NPCIL.
AREVA has a package deal with NPCIL which will include investments in mining projects. India must secure uranium sources to support the rapidly expanding nuclear power industry.
A further business purpose is to make India a center for nuclear technology exports, using Indian quality low cost engineering.
India is growing at such a rate, there is an increasing demand for power generation. India in the coming decades will have the world’s largest population with a massive middle sector or middle class population. The demand for reliable electricity will increase substantially.
The Indian power solution will be a mix of coal, natural gas, crude oil, and renewable energy. Nuclear power will be a part of the future energy mix.
The US company Westinghouse was seeking the NPCIL business. President Obama’s trip to India was to create jobs in the US through exports. Is there a political message in the Indian/French transaction? Is India upset with the US military support of Pakistan?
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