February 7, 2009

Russia, India agree on nuke fuel deal

Russian nuclear fuel producer TVEL is set to sign a $780 million contract to supply fuel for new Indian nuclear power plants, officials said Saturday.

A spokesman for Russia's state nuclear power corporation Rosatom told RIA Novosti that the contract, if signed, would make Russia the first country to supply nuclear fuel to India since an international ban on such sales was lifted in September.

Under the TVEL deal, Russia would supply India with 2,000 metric tons of uranium pellets, the news agency said.

Russian officials said the contract will strengthen ongoing nuclear cooperation between Moscow and New Delhi, who in December signed an agreement to build an additional four reactors for the Kudankulam nuclear power plant in addition to finishing two reactors under construction from an earlier contract.

The countries also agreed to construct new nuclear plants in India, RIA Novosti reported.