Indian Oil Corp, the nation's largest oil firm, will set up a Rs 10,000 crore (Rs 100 billion) nuclear power plant in association with Nuclear Power Corp of India Ltd.
"We have signed a memorandum of understanding (MoU) for setting up at least one 1,000 MW nuclear power power plant with NPCIL," IOC director (Business Development) B M Bansal said.
NPCIL will be the operator and take at least 51 per cent stake while IOC is contemplating taking either 49 per cent or 26 per cent interest.
"Nuclear power gives us a good opportunity to become an integrated energy firm," he said. "We want to gain experience and may be at a future date we may set up nuclear plants on our own (when the sector is opened up)."
IOC may invest Rs 1,000 to Rs 1,500 crore as equity in the project with NPCIL, he said, adding nuclear power project offered assured returns unlike the company's refining business that is subject to highly volatile margins.
Techno-commercial modalities, including source of nuclear fuel and site would be decided over the next six months.
"We have requested NPCIL to involve us in an approved project so that the project is constructed by 2014," he said adding it may take six years to build a project at a site already not approved.
