New Delhi: With Kudankulam nuclear project likely to be commissioned next month, Russia has agreed to extend a USD 3.4 billion credit for setting up of two more 1,000 MW atomic power plants at the same site in Tamil Nadu.
The two nations signed a protocol on Tuesday in Moscow for financing units 3 and 4 of the Kudankulam Power Project under which the Russian Federation will extend export credit amounting upto USD 3.4 billion for 85 percent of the value of works, supplies and services provided by the Russian organisations for the two units.
The protocol also has provisions for state export credit amounting to USD 800 million for financing upto 85 percent nuclear fuel and control assemblies. The credit carries an interest rate of four percent per annum.
The estimated cost of building units 3 and 4 at Kudankulam will be Rs 32,000 crore, out of which Rs 17,000 crore is expected to be met through the Russian state credit, a Department of Atomic Energy (DAE) statement said.
The protocol was signed by A P Joshi, Special Secretary in the DAE, and S A Storchak, Deputy Minister of Finance of the Russian Federation.
After facing seven months of protest, the Kudankulam nuclear power project is at an advanced stage of completion with the first 1,000 MW unit expected to be commissioned next month.
The second unit is expected to be commissioned after a gap of seven months from the commissioning of the first unit.
The agreement to set up two nuclear power plants at Kudankulam was signed in 1988, which was followed by an additional agreement in 1998.
Another Inter-Governmental Agreement was signed in December 2008 which provided for construction of four more nuclear power units at Kudankulam.


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