India could become major contributor to global construction expertise
– By Stephen Heiser –
Acording to a report in the Hindu Busininess Line, the global nuclear renaissance could potentially see a big chunk of new equipment manufacturing capabilities shifting eastwards. Globally, a shortage of contractors with nuclear certification, key component manufacturers and that of skilled workers is already being felt.
The International Atomic Energy Agency (IAEA) expects India, along with China and South Korea, to figure as big contributors to global nuclear construction expertise and core manufacturing capacity, going forward. This includes the growth of nuclear capability through localisation of many of the skills and capabilities in the Asian countries, according to IAEA’s “International Status and Prospect of Nuclear Power” report.
“During the period of peak construction there were major nuclear system supply companies in Canada, France, Germany, Japan, the Russian Federation, Sweden, Switzerland, the UK and the US… (Now) in India, China and the Republic of Korea, the growth of nuclear capability through localisation of many of the skills and capabilities provides the possibility that these countries may contribute further to meeting the world’s need for nuclear construction expertise,” the report has noted.
In the wake of the opening up of the Indian nuclear market, the domestic industry has unveiled plans to step-up nuclear manufacturing in a big way, with an eye on both the domestic market and possible export opportunities. This includes plans by Bharat Forge, which has already tied-up with French nuclear major Areva, to set up a nuclear forgings facility. Engineering majors Larsen & Toubro (L&T) and state-owned Bharat Heavy Electricals Ltd (BHEL) are also eyeing the nuclear forgings space.
Besides, tie-ups by L&T and BHEL for reactor equipment manufacture and the conventional island portion of new Light Water Reactor-based nuclear projects are on the anvil. While L&T has already tied-up with Westinghouse and AECL of Canada for reactor manufacture, BHEL is slated to follow suit and is evaluating joint venture opportunities.
The IAEA report notes that designers of currently available nuclear steam supply systems have been reduced to a small group who increasingly work closely together. “The nuclear supply industry has adjusted to the past 25 or so years through 18 consolidations. Questions have been raised about whether there is capacity available to meet the near term demand if the high growth projections for nuclear power come true… There is some evidence of concern about the industry’s ability to meet demand for key components (such as pressure vessels and key forgings)… An increase in manufacturing capacity will be needed if the higher expectations for growth in new nuclear power plants are to be met,” the report has noted.
No spare capacity
The worldwide shortage of contractors with nuclear certification, nuclear component manufacturers and nuclear skilled workers is already being felt. Besides the Russian nuclear industry, only two major companies — Japan Steel Works and French firm Creusot Forge — are currently equipped to make critical reactor parts such as pressure vessels. Both these firms are fully booked, with no capacity to spare till 2010.
“There is a big shortage of facilities manufacturing critical equipment, including forgings and castings, for nuclear projects. Indian firms have a big opportunity to step into the critical equipment space,” a senior BHEL official said.