Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Saturday, 20 May 2017

NPAs in the making ?



During past few days , media is full of reports about the Central Government’s “ Bold Decision “ to set up 10 Nuclear Power Plants ( totalling 7,000 MW ), at a cost of Rs 70,000 crores


As reported in Hindustan Times / DNA , following “ arguments “ , make this , a “ bold decision “ :


·         To pump in Rs 70,000 cr of Capital Expenditure into the economy at a time when private investment continues to flag


·         To revive India’s moribund domestic nuclear industry


·         To help India ramp up its renewable base-load power capacity


·         The sheer amount of money involved gives India’s domestic nuclear firms, to scale up their designs and potentially break the 1,000 MW barrier


·         To leverage the domestic nuclear industry’s ability to manufacture reactor components that were third cheaper than the global norm and make India , a global hub of nuclear reactor technology and manufacturing


On face of it , all of the above make for eminent sense !


Until you ask the following questions :


·         How come , no nuclear power plants have come up anywhere in the World for past several decades ?


·         Why are old Nuclear Power Plants closing down everywhere ?


·         If the power produced with these 10 plants is going to cost the consumers , anywhere between Rs 5 – 7 / kwh , how can it compete with the Solar Power at Rs 2 / kwh ? ( just wait this to happen by May 2018 ! )



·         Apparently , it will cost Rs 10 cr / MW for setting up a Nuclear Plant as against Rs 5 cr / MW to set up a Solar power plant . What can justify this ?


·         Most likely , it will take  TEN YEARS  to construct / commission these Nuclear plants as against , ONE YEAR to put up SAME CAPACITY , Solar plants ! ( - which , incidentally , is THE TARGET for 2017-18 )



·         If the “ economics “ are so bad , which bank will finance these plants ? – knowing fully well that these Rs 70,000 cr will become NPA , even before the plants go on stream !


Bankers are already losing sleep over that the Rs 5 lakh*crore that they have advanced to some 60 + Coal based power plants which are “ under construction “ ( meaning , “ stuck “ ! ) and not likely to ever get completed / commissioned , because no DISCOM is ready to buy their “ expensive “ power at Rs 4 / kwh !



·         What about the “ Safety concerns / fears “ of citizens residing near these proposed Nuclear Plants ?  Have we forgotten Kudankulum / Jaitapur  ?




In case , you need to confirm that this is not a “ bold “ but a “ bad “ decision , do read :


Industry Meltdown: Is the Era of Nuclear Power Coming to an End?








Dear Shri Piyush  Goyalji ,


I urge you to take a second look at this decision




21  May  2017


No comments:

Post a Comment