In December, the French company Électricité de France (EDF) submitted a “techno-commercial proposal” to the Indian government for the Jaitapur nuclear power project in Maharashtra. The idea of importing six nuclear European Pressurised Reactors (EPRs) was initiated by the United Progressive Alliance government more than a decade ago, but the project had made little progress due to concerns about the economics and safety of the EPRs, local opposition, and the collapse of the initial French corporate partner, Areva.
Despite these problems, in the past few months, the Modi government has taken several high-level steps towards actuating the project. In March 2018, EDF and the Nuclear Power Corporation of India (NPCIL) signed an “industrial way forward” agreement in the presence of Prime Minister Narendra Modi and French President Emmanuel Macron. Last month, after meeting the French Foreign Minister, Jean-Yves Le Drian, External Affairs Minister Sushma Swaraj announced that “both countries are working to start the Jaitapur project as soon as possible”.
The urgency is inexplicable as it comes before the techno-commercial offer has been examined and as earlier questions about costs and safety remain unanswered. Moreover, with the Indian power sector facing surplus capacity and a crisis of non-performing assets (NPAs), a large investment in the Jaitapur project is particularly risky.