Firms likely to benefit from nuclear deal

The US Senate action put India closer to being able to purchase US nuclear fuel, reactors and related technology.

It has overwhelmingly endorsed a plan to allow US civilian nuclear fuel shipments to India, handing President George W Bush an important victory on one of his top foreign policy initiatives.

Senior lawmakers championed the proposal, which would reverse decades of US anti-proliferation policy.

They said that it strengthens a strategic relationship with a friendly country that has long maintained what the United States considers a responsible nuclear program.

Nuke deal beneficiaries BHEL L&T Areva T&D NTPC Reliance Energy Rolta Siemens ABB Alstom Projects Crompton Greaves HCC Gammon

Power generation

Back home, analysts have welcomed the Senate approval. "This is a positive development from India's perspective," said Amitabh Chakraborty, Head - PCG, Brics Securities.

The Senate action was critical to help allow India meet its soaring energy needs.

"This is a positive development for the nuclear power programme in India," said Amitabh Mundhra, Director, Simplex Infrastructure.

The government plans to double the country's power generation capacity that currently stands at 1,250,000 MW.

According to estimates, India country would need additional 100,000 MW of power by 2012.

"The government has announced its intention and put in more nuclear power. More reactors will be put in place going forward. The deal can give raw material for projects and opens up equipment export avenues," added M V Kotwal, Director, Larsen & Toubro.

Of the total power generated, thermal power constitutes the maximum at 57 per cent followed by hydel power at 25 per cent. Nuclear energy constitutes a meager 3 per cent and this is likely to go up three fold by 2015.

Ashu Kakkar, a technical analyst suggests that potential investors can look into buying L&T, HCC and Gammon India from a long-term perspective.
courtesy:- ndtv profit

BHARTI YET TO DECIDE BETWEEN WALMART & TESCO

Bharti’s partner for its much awaited retail foray is likely to be finalised shortly. In the face of speculation about its partner - Tesco or Walmart, Bharti Enterprises chairman Sunil Mittal said a final decision has not yet been taken in the matter.

“We are going through the process of finalising the details. No decision has been taken as yet, we are engaged in an inward process that seeks to tie-up all details. We will shortly make an announcement,” Mittal said,

He added details like the size of the investment, the brand name had not been finalised and would happen only after the partner is decided.

It may be recalled that Bharti had been planning an ambitious retail foray, separate from its existing farm produce venture, for over a year now. The company has talked with the likes of Tesco, Walmart and even Carrefour. Till date, Tesco has been seen as the leading contender for partnering Bharti.

nifty intraday 17th nov

US SENATE APPROVES INDIA NUCLEAR DEAL

The US Senate has overwhelmingly voted to pass a controversial deal to share civilian nuclear technology with India.

The deal was proposed over a year ago as a way to boost ties with a strategic ally. In exchange, India must allow the US to inspect its civilian reactors.
Critics have argued the agreement will be detrimental to global anti-nuclear proliferation efforts.But President George W Bush hailed the move as bringing India into the "nuclear non-proliferation mainstream".

"As India's economy continues to grow, this partnership will help India meet its energy needs without increasing air pollution and greenhouse gas emissions," he said.

The legislation was adopted by 85 votes to 12 in the Senate after a series of proposed amendments - which India had opposed - were defeated.The Senate bill and a version passed by the House of Representatives, the lower house of the American parliament, must be reconciled and approved by Mr Bush before the legislation can take effect. Important fillip

The deal is a "lasting incentive" for India not to test nuclear weapons and "to co-operate closely with the United States in stopping proliferation", Senator Richard Lugar said as the upper house of the American parliament began debating the bill. Correspondents say that once the legislation is eventually approved, the initiative will overturn decades of US anti-proliferation policy.

They say that while success for the bill in the Senate hands President George W Bush an important fillip, several obstacles loom before the two countries can begin trade in civilian nuclear materials.

India would need to get approval for the deal from the Nuclear Suppliers Group, an assembly of nations that export nuclear material.Delhi would also need to negotiate a safeguard agreement with the UN nuclear watchdog, the International Atomic Energy Agency.There is also some concern about the transfer of missile technology to Iran by at least two Indian firms, recently black-listed by the US government.

Overwhelming majority

Once those hurdles have been overcome, technical negotiations would need to be completed between the two countries before Congress holds another vote on the overall deal.The BBC's Shahzeb Jillani in Washington says that the Bush administration sees the deal as one of its most important foreign policy initiatives.Overall, the agreement has enjoyed strong bipartisan support among US lawmakers.Earlier this year, the House of Representatives passed its version of the bill with an overwhelming majority.

The Indian Prime Minister, Manmohan Singh, strongly defended the deal in the Indian parliament in August.

He said India would not accept any move by Washington that would impede its atomic weapons programme, nor would it allow any international scrutiny of its military facilities.

But Mr Singh also argued that the deal was in India's interests.
He said mass poverty could only be removed by a fast expanding economy, which in turn needed energy.
courtesy :- BBC NEWS