Indian cos to tap $1b opportunity in Rooppur nuke project
Indian companies are likely to participate in upcoming tenders for what The Hindu BusinessLine called non-critical works at the $12.6-billion Rooppur Nuclear Power Plant (NPP) in Bangladesh.
The construction of the second 1,200-megawatt unit of the plant kicked off on Saturday.
The project is being executed by the Bangladesh Atomic Energy Commission (BAEC) and Russia’s state-owned nuclear corporation Rosatom, the Indian newspaper mentioned in a report published on 14 July.
The Hindu BusinessLIne quoting a source close to Rosatom, said infrastructure majors Larsen and Toubro (L&T), Tata Group and Shapoorji Pallonji Group, Anil Ambani-led Reliance Infrastructure are among companies exploring opportunities related to the Rooppur project.
Indian players, however, are likely to face fierce competition from Chinese, Japanese and Korean companies that are partnering with local players, said the report.
Over 70 tenders for various non-critical works at Rooppur plant have reportedly been floated by ASE Group so far. The potential opportunity could be in the range of $500 million to $1.2 billion spread across multiple contracts, said the report referring to “sources”.
“Rooppur NPP is probably the first project of such complexity for Bangladesh, and it is natural for any country executing such a critical project for the first time to attract expertise from outside. While Russian companies will dominate at the equipment and critical service supply level, Indian EPC players could execute civic construction contracts as they have the required expertise,” the Indian newspaper quoted the person cited above as saying.
The trilateral agreement for cooperation on the project signed by India, Russia and Bangladesh in March 2018 has opened up an opportunity for Indian companies to participate in construction and installation works as well as supply of non-critical materials and equipment for the project, Alexander Khazin, senior vice-president for International Projects of ASE Group, an engineering division of Rosatom and the general contractor for Rooppur NPP, reportedly said.
Hindustan Construction Company Ltd (HCC) has earlioer this year bagged a $110-million contract for civil works at Rooppur NPP in a joint venture with Bangladesh-based MAX Group, where the Indian company holds 40 per cent share, the Hindu BusinessLine said.
“HCC has become the first Indian company to participate in the international civil nuclear market,” Arjun Dhawan, director and Group CEO, said at the time, according to the report.