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India seeks loan from US Bank for nuclear reactors

The loan of $8-9 billion will be used to finance 6 Westinghouse nuclear reactors

Policy Pulse
Publish Date: Sep 22 2016 11:06AM | Updated Date: Sep 22 2016 11:06AM

India seeks loan from US Bank for nuclear reactors

India now targets a tenfold expansion in capacity to 63,000 MW by 2032, and US, French and Russian companies are among those chasing the business.


Currently India is negotiating with US Export-Import Bank for an $8-9 billion loan to finance six Westinghouse Electric nuclear reactors.


The mega-project, the result of warming US-India ties in recent years, could open up billions of dollars of further investment in India's nuclear power sector.


The Westinghouse deal, however, is contingent on financing and Ex-Im cannot approve loans of more than $10 million.


Only two of five seats on Ex-Im's board are filled and the appointment of a third director needed to clear board decisions.


"Financing of the reactors is the critical piece; everything is down to this," said source report involved in protracted negotiations to build the reactors in Andhra Pradesh.


Indian negotiators and Ex-Im officials were trying to set the terms of the financial package in the hope that the freeze on the bank, would lift soon.


In addition to US Ex-Im, India is also seeking funding from Japan and South Korea for the reactors to be built in Kovvada, two sources familiar with the talks said.