Nuclear power is the next new frontier for India's ambitious companies following in the heels of Punj Lloyd and L&T.
The Hindustan Construction Company (HCC) on Wednesday announced its plans to enter into this uncharted sector.
Things seem to have started moving in the nuclear power front.
HCC has entered the nuclear power sector and has tied up with UK based AMEC for the same.
The Indo-US civil nuclear treaty signed last year has opened up a multi-billion dollar opportunity not just for global majors like Westinghouse, Areva and GE, but also for Indian companies like HCC, which is eyeing orders worth Rs 5-6,000 crore per year over a period of next five years.
Ajit Gulabchand, CMD of HCC, said, “The total opportunity is of about Rs 1 lakh- 50,000 crore, out of which Rs 60,000 crore order will be for implementation and HCC is eying about Rs 20-30,000 crore order in five years time.”
Nuclear power is at a nascent stage right now. But with the government ready to invite bids for about 15 nuclear reactors over the next 3-4 months, nuclear power capacity is poised to double to 10,000 megawatts.
Meanwhile, the government is likely invite bids for 15 nuclear reactor projects in next few months. India's present nuclear power capacity is little over 5000 MW.
But its nuclear power capacity will be about 10000 MW by 2012-13 and opportunities for nuclear power players in India is more than Rs 60,000 crore.
But how HCC takes on competition such as L&T-Westinghouse combine or other big firms with its tie-up with UK-based AMEC, a consultancy services expert that has little exposure to project execution?
“It will be a competition and we have our own competence. We will focus more on project execution and not on equipment manufacturing. So the other companies would be competition at some point but the same companies will be our supplier at some point,” said Gulabchand.
Bigger opportunity means bigger competition and it is not just HCC that surely will try and consolidate its position in the nuclear power field. But other players like L&T, Punj Lloyd, BHEL and Bharat Forge will move beyond the framework of the memorandum of understanding.
Over all, it will be India as a country that will be benefiting from the government's nuclear power programme in terms of cheaper and cleaner fuel.