Top nine stocks likely to be benefited from Indo-US nuclear deal
The two countries had in 2008 signed a landmark deal giving India access to civilian nuclear technology, but it has been held up by US concerns.
By ET Online | Updated:
NEW DELHI: Ending the log jam after six long years, President Barack Obama and PM Narendra Modi announced a breakthrough in the nuclear deal on Sunday. The inability to move ahead on this had been the major irritant in the ties.
The two countries had in 2008 signed a landmark deal giving India access to civilian nuclear technology, but it has been held up by US concerns over India’s strict laws on liability in the event of a nuclear accident.
While there were no immediate details on how the impasse had been broken, India will set up an insurance pool -- led by General Insurance Co and four other insurance companies of a total amount of Rs 750 crore -- to indemnify companies that build reactors in the country against liabilities in case of a nuclear accident, ET reported.
The remaining Rs 750 crore of the total Rs 1,500 crore to offset liabilities will be provided by the government of India. This will address the US concerns over clause 17 of the Indian liability Act, added the report.
“The culmination of the contentious Nuclear Deal with US would once again send a signal to offshore investors that the new regime, led by Prime Minister Narendra Modi, means business and is on the right path to unleash reforms,” says Aviral Gupta, Independent Investment Strategist.
Antique Stock Broking Ltd identifies nine stocks which are likely to benefit more from the Indo-US ties:
NTPC: The company had formed a joint venture with Nuclear Power Corporation of India. It was looking at setting up a 2000 MW nuclear plant and was in talks with GE Energy for technology and fuel in 2012. However, the project is put on the back-burner. Post the deal, one can expect revival of the project.
BHEL: BHEL has manufactured and supplied certain Nuclear Reactor components like steam generators, reactor headers, and end shields to NPCIL for their 220 MWe and 540 MWe reactors based on Pressurized Heavy Water Reactor (PHWR) Technology.
L&T: L&T has signed four agreements with foreign nuclear power reactor vendors. The first, with Westinghouse, sets up L&T to produce component modules for Westinghouse's AP1000 reactor. The second agreement was with Atomic Energy of Canada Ltd (AECL) "to develop a competitive cost/scope model for the ACR-1000."
Alstom India: Alstom India, which is now majorly owned by General Electric, can benefit from possible demand of turbine-generators (TG) used in nuclear power plants, given that GE is likely to be an active player in the field.
HCC: HCC has constructed four 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.
Siemens: Siemens has been involved in setting up high voltage switchyards at nuclear power plants.
Walchandnagar Industries: It makes critical equipment for India’s nuclear power facilities.
KSB Pumps: Has supplied pumps to Nuclear Power Corporation and continues to be a preferred supplier.
(The above article has been compiled with inputs from Antique Stock Broking. Views and recommendations expressed in this section are the analysts’ own and do not represent those of EconomicTimes.com.)
The two countries had in 2008 signed a landmark deal giving India access to civilian nuclear technology, but it has been held up by US concerns over India’s strict laws on liability in the event of a nuclear accident.
While there were no immediate details on how the impasse had been broken, India will set up an insurance pool -- led by General Insurance Co and four other insurance companies of a total amount of Rs 750 crore -- to indemnify companies that build reactors in the country against liabilities in case of a nuclear accident, ET reported.
The remaining Rs 750 crore of the total Rs 1,500 crore to offset liabilities will be provided by the government of India. This will address the US concerns over clause 17 of the Indian liability Act, added the report.
“The culmination of the contentious Nuclear Deal with US would once again send a signal to offshore investors that the new regime, led by Prime Minister Narendra Modi, means business and is on the right path to unleash reforms,” says Aviral Gupta, Independent Investment Strategist.
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“More so, the new government is very keen to iron out contentious issues which have been hampering the progress of our country,” he adds.Antique Stock Broking Ltd identifies nine stocks which are likely to benefit more from the Indo-US ties:
NTPC: The company had formed a joint venture with Nuclear Power Corporation of India. It was looking at setting up a 2000 MW nuclear plant and was in talks with GE Energy for technology and fuel in 2012. However, the project is put on the back-burner. Post the deal, one can expect revival of the project.
BHEL: BHEL has manufactured and supplied certain Nuclear Reactor components like steam generators, reactor headers, and end shields to NPCIL for their 220 MWe and 540 MWe reactors based on Pressurized Heavy Water Reactor (PHWR) Technology.
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It is looking for a tie-up for manufacturing equipment of up to 700 MW & 1500 MW. It has an existing tie-up with Siemens for nuclear technology.L&T: L&T has signed four agreements with foreign nuclear power reactor vendors. The first, with Westinghouse, sets up L&T to produce component modules for Westinghouse's AP1000 reactor. The second agreement was with Atomic Energy of Canada Ltd (AECL) "to develop a competitive cost/scope model for the ACR-1000."
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It had also signed an agreement with Atomstroyexport primarily focused on components for the next four VVER reactors at Kudankulam, but extending beyond that to other Russian VVER plants in India and internationally. Then signed an agreement with GE Hitachi to produce major components for ABWRs. The two companies hope to utilize indigenous Indian capabilities for the complete construction of nuclear power plants, including the supply of reactor equipment and systems, valves, electrical and instrumentation products for ABWR plants to be built in India.Alstom India: Alstom India, which is now majorly owned by General Electric, can benefit from possible demand of turbine-generators (TG) used in nuclear power plants, given that GE is likely to be an active player in the field.
HCC: HCC has constructed four 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.
Siemens: Siemens has been involved in setting up high voltage switchyards at nuclear power plants.
Walchandnagar Industries: It makes critical equipment for India’s nuclear power facilities.
KSB Pumps: Has supplied pumps to Nuclear Power Corporation and continues to be a preferred supplier.
(The above article has been compiled with inputs from Antique Stock Broking. Views and recommendations expressed in this section are the analysts’ own and do not represent those of EconomicTimes.com.)
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