India and Russia have signed a deal paving the way for the construction of four new nuclear power reactors at Kudankulam, Tamil Nadu, of a 1000 MW light water type usually known as VVER or WWER (Water-Water Energy Reactor).
The agreement was finalised during an official visit to India by Russian Prime Minister Victor Zubkov.
Under the terms of the deal, Russia will build the four extra reactors at Kudankulam, where two 1000 MW light water reactors are currently being built by Atomstroyexport.
The deal cannot move forward until India completes an IAEA safeguards agreement, and it will also require an exemption from the 45-nation Nuclear Suppliers Group (NSG).
For Russia, the Indian order is another step forward in gaining a new segment of the world market. The event is also of global significance as evidence of the nuclear industry's revival.
The site at Kudankulam has already stood a serious test when it was hit by tsunami caused by an earthquake in the Indian Ocean. The protective dam was partially washed out, but did its job of blocking the exit into the open sea.
The two existing reactors at Kudankulam, where first concrete was poured in March 2002, are nearing completion. According to estimates by Rosatom, the Russian Federal Atomic Energy Agency, the first unit will be commissioned in late 2008, with the second becoming operational in 2009.
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