The Kaiga power project

Kaiga (North Karnataka) Feb. 26: Amid cheers by its 500 employees, the Kaiga Atomic Power Project’s third unit achieved its first criticality today, setting international benchmarks of completing a nuclear power project in less than five years and at less than $1,000 per kilowatt.

The 220-MWe capacity plant, the 17th nuclear power unit operational in the country, is expected to meet its March-end schedule of supplying power to the southern grid.

Atomic Energy Commission chairman Anil Kakodkar and Nuclear Power Corporation chairman and managing director S.K. Jain were among those present at the site when the pressurised heavy water reactor was declared critical at 10.10 this morning.

Criticality means the plant witnessed the first self-sustaining nuclear fission chain reaction in the reactor core, and could start generating nuclear power in 20 days. This would take the total installed capacity from 3,900 MWe to 4,120 MWe.

Kakodkar underlined the significance of the achievement at a formal function at the plant site, about 55 km from the coastal town of Karwar.

“The achievement is historic. The international benchmark for completion of a nuclear power project is five years, and this one has been completed in less than five years, of which for two years, the plant faced heavy rain,” he said.

He added that the plant was likely to set another international benchmark in capital costs.

A budget of Rs 3,832 crore was sanctioned for Kaiga Units 3 and 4, including the basic cost of Rs 2,727 crore and interest during construction of Rs 555 crore.

“The actual cost will only be known when Unit 3 and Unit 4 are completed, but estimates show that it could be completed at Rs 2,500 crore for 440 MWe of power. If you deduct the interest during construction, we expect it to cost Rs 1,950 crore, which would work out to Rs 4.43 crore per MWe and $984 per KW,” Kakodkar added.

Internationally, capital costs are $1,200-$1,300 per KW, and international companies have been trying hard to get it below $1,000 per KW.

The successful completion of Unit 3 could open up opportunities for India in exporting its technical excellence in executing 220-MWe projects.

“At least two Asia Pacific countries have approached us, and we are at a stage of intensive negotiations. They are happy with the time schedule, the costs, and safety of our projects,” Jain said.

Kaiga’s Unit-4 is expected to begin commercial operations by September.

Harsh Kapoor, site director of Units 3 and 4, said: “We are well on course for fulfilling our commitment of generating 4120 MWe by 10th Five Year plan (2002-2007), 10,280 by 11th plan (2007-2012), and 20,000 MWe by 2020.”