Westinghouse Expects to Sell India Nuclear Reactors by End 2016

  • Company in talks to sell at least six reactors to India
  • Proposed insurance program is encouraging: Westinghouse CEO

Westinghouse Electric Co. expects to reach a deal with India by the end of next year to provide at least six nuclear reactors.

The Pennsylvania-based company, which is a unit of Toshiba Corp., is in negotiations with India to build AP1000 reactors with a capacity of 1,150 megawatts each in the state of Gujarat, Chief Executive Officer Daniel Roderick said in an e-mail. Progress toward a deal comes as India considers changes to liability laws for nuclear accidents.

Indian law allows operators to hold suppliers responsible for accidents, making international equipment makers hesitant to sign deals as the nation seeks to expand nuclear power capacity more than 10-fold by 2032. As part of a nuclear-liability agreement with the U.S. in January, India plans to set up a 7.5 billion rupee ($113 million) insurance pool to shield operators and suppliers.

“Recent changes made to the proposed insurance program are encouraging to us,” Roderick said. If the U.S. government says India meets international standards for liability law, “we are in a position to go forward quickly.”

India’s Department of Atomic Energy may include clauses in contracts with domestic suppliers to spare them from the right to recourse, Sekhar Basu, a secretary with the agency said last month in New Delhi.

Before it's here, it's on the Bloomberg Terminal.