There are however concerns about the huge costs involved in procuring the EPR nuclear reactors, which are yet untried. India and France will also collaborate on space technology and military hardware.
India and France signed a multibillion agreement on Monday to build two nuclear power plants in India as French President Nicolas Sarkozy worked to drum up business for his nation during his four-day visit here.
Areva SA, one of France’s main nuclear power companies, will build two European pressurized reactors of 1,650 megawatts each at Jaitapur in Maharashtra.
The agreement, valued at about $9.3 billion, was signed in the presence of Mr. Sarkozy and Prime Minister Manmohan Singh.
The deal marked the first two of 20 nuclear reactors the country wants to build to meet its soaring energy demand.
Mr. Sarkozy and Dr. Singh later met to discuss regional security, trade and investment.
The talks were also expected to touch on plans for the structural reform of the international monetary system through the Group of 20 countries, currently headed by France.
Mr. Sarkozy, who arrived on Saturday, is accompanied by his defence, foreign and finance ministers and nearly 60 business leaders.
Defence sales
No defence agreements are expected during the visit, but Mr. Sarkozy is likely to push for French companies to win contracts to supply military hardware.
French companies are negotiating to upgrade 51 Mirage-2000 jet fighters in the Indian air force. India is also in the market to buy 126 fighter jets, a deal worth $11 billion, and about 200 helicopters worth another $4 billion.
According to defence experts, India is expected to spend $80 billion between 2012 and 2022 to upgrade its military.
Bilateral trade
Mr. Sarkozy’s visit also coincides with at least two important meetings with Indian business leaders. The French president is keen to attract Indian companies to invest in France, even as French companies are seeking a slice of India’s booming economy.
Bilateral trade declined in 2009 due to global economic woes, but was on the upswing this year, said Vishnu Prakash, External Affairs ministry spokesman. The two countries have set a trade target of 12 billion euros for 2012.
Mr. Sarkozy is to visit Mumbai before returning home Tuesday.
No comments:
Post a Comment