French, Indian leaders in talks on nuclear power
NIRMALA GEORGE - AP - Mon Dec 06, 12:30AM CST
NEW DELHI (AP) — India and France were likely to move toward adding two nuclear power plants to meet burgeoning Indian energy demand as the countries' leaders met for talks Monday.
Visiting French President Nicolas Sarkozy is the nuclear deal will earn billions of dollars for the French company that would build the plants.
The talks between Sarkozy and Indian Prime Minister Manmohan Singh also were scheduled to include plans for the structural reform of the international monetary system through the Group of 20 countries, currently headed by France.
An agreement between French nuclear power company Areva SA and India's Nuclear Power Corp. on building power plants in India was likely to be signed at Monday's talks, said T.P. Seetharam, a top official in India's Ministry of External Affairs.
Under the agreement, Areva will build two European pressurized reactors of 1,650 megawatts each at Jaitapur in the western Indian state of Maharashtra. Indian officials have assured France that liability laws in India are in keeping with international laws and have ensured the security of nuclear operators.
India is planning to build about 20 new nuclear power plants to help supply its burgeoning energy needs. It has 20 now and four more under construction. The country's nuclear power industry is expanding rapidly to increase output from its current 4,500 megawatts to 64,000 by 2032.
Sarkozy, who arrived Saturday, is accompanied by his defense, foreign and finance ministers and nearly 60 business leaders.
No defense agreements are expected during the visit, but Sarkozy is likely to push for French companies to win contracts to supply India with 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 defense experts, India is expected to spend $80 billion between 2012 and 2022 to upgrade its military.
Sarkozy's visit also coincides with at least two important meetings with Indian business leaders. The president is eager 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 is on the upswing this year, said Vishnu Prakash, India's external affairs ministry spokesman. The two countries have set a trade target of 12 billion euros ($15.8 billion) for 2012, Prakash said.
Sarkozy was scheduled to visit Mumbai, India's financial and entertainment capital, before returning home Tuesday.
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