Stocks benefited from nuclear deal.

By | September 6, 2008

L&T

L&T has done engineering, procurement and construction projects for nuke power plants. It is currently working on the 2,000 MW Kudankulam nuclear project. The company will get into mainstream nuclear projects if the deal goes through. L&T’s talks with Toshibha failed. It entered into a recent tie-up with Mitsubishi for super critical boilers. The Mitsubishi technology would be used for Nuclear Power Corp. L&T may leverage its relationship with Mitsubishi for its other nuclear business.

LT is planning to form a Rs 2,000-crore forging venture with NPCIL. At present L&T’s reactor making segment contributes 3% to the company’s turnover and this is expected to go up to 7-10% now that the deal has been signed.

BHEL

BHEL supplies up to 500 MW of equipment to Nuclear Power Corp. It is looking for a tie up manufacturing equipment of up to 700 MW & 1500 MW. The company has been in talks with Alstom, GE Energy, Russia’s LMZ and Siemens. It has an existing tie-up with Siemens for nuclear technology.

BHEL has a JV with NPCIL for manufacturing nuclear reactors and now, the signing of the deal would give this JV a major boost.

NTPC

The company is in talks with Nuclear Power Corporation of India. It is looking at setting up 2000 MW nuclear plant. He is In talks with GE Energy for technology and fuel. NTPC is looking at the project to be operational by 2012-2013.

NTPC has also drawn plans to enter nuclear power generation by setting up a 2,000 MW project. It would be easier for PSUs as there is no restriction on them.

Areva T&D

Areva T&D is looking at a plant for uranium mining and recycling. The plant would be set up after nod from Nuclear Power Corp.

Alstom Projects

The company already makes nuclear reactors and rotors. Its parent company is a world leader in conventional nuclear projects. It makes turbines for nuclear power stations. It supplies steam turbines to over 30% of nuke power stations globally.

Rolta

The Rolta-Stone and Webster joint venture competent provides reactor-building technology. It will leverage on its partner’s core competency. Stone & Webster’s parent has 20% in Westinghouse Electric, a nuclear reactor maker.

HCC

HCC has constructed four of seven nuclear power projects in India. It is an EPC contractor for nuclear projects.

ABB

ABB makes components for power projects. Its parent company’s exposure includes new
nuclear power plants, systems and components. The parent company’s exposure includes fuel services, waste management and decommissioning.

Crompton Greaves

Crompton Greaves works with Nuclear Power Corporation of India. It has completed a switchyard for nuclear project.

Walchandnagar Industries Walchandnagar Industries has supplied critical components like the calandria to most of the nuclear power plants in India and now naturally be a big beneficiary.

Siemens has a marginal exposure through its parent company.


Reliance Energy
plans to invest additional Rs 12,000 crore in nuclear power capacity. It plans to install 2000 MW of nuclear power capacity.

Tata Power has tied up with some major nuclear equipment suppliers like Areva. It already has a relationship with Toshiba;
it will leverage on it.

Tata Power is looking at entering this sector either alone or in a JV once it is opened up to private utilities. It also plans to go into the business of front-end and back-end fuel cycle technology business.

ppls are recommended to buy any of these stocks in dips not on MOnday as most of these stocks will rally on Monday.

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