India and France signed a multibillion agreement
Monday to build two nuclear power plant in India as French
President Nicolas Sarkozy worked to drum up business for his nation
during his four-day visit here.
Areva SA, one of France's main nuclear power companies, will
build two European pressurized reactors of 1,650 megawatts each at
Jaitapur in the western Indian state of Maharashtra.
Te agreement, valued at about $9.3 billion, was signed in the
presence of Sarkozy and Indian Prime Minister Manmohan Singh.
The deal marked the first two of 20 nuclear reactors India wants
to build to meet its soaring energy demand.
Foreign governments have been courting India to try to get a
piece of that lucrative market, but there have been concerns that
India's recently passed liability law might prove too onerous for
international companies to risk entering the market here.
Indian officials assured France that their liability laws were in
keeping with international standards and the security of nuclear
operators was ensured, a French official said. The official spoke on
condition of anonymity because he was not authorized to speak to the
media.
Sarkozy and Singh later met to discuss regional security, trade
and investment.
The talks were also expected to touch on plans for the structural
reform of the international monetary system through the Group of 20
countries, currently headed by France.
Sarkozy, who arrived Saturday, is accompanied by his defense,
foreign and finance ministers and nearly 60 business leaders.
No defense agreements are expected during the visit, but Sarkozy
is likely to push for French companies to win contracts to supply
military hardware.
French companies are negotiating to upgrade 51 Mirage-2000 jet
fighters in the Indian air force. India is also in the market to buy
126 fighter jets, a deal worth $11 billion, and about 200
helicopters worth another $4 billion.
According to defense experts, India is expected to spend $80
billion between 2012 and 2022 to upgrade its military.
Sarkozy's visit also coincides with at least two important
meetings with Indian business leaders. The French president is keen
to attract Indian companies to invest in France, even as French
companies are seeking a slice of India's booming economy.
Bilateral trade declined in 2009 due to global economic woes, but
was on the upswing this year, said Vishnu Prakash, India's external
affairs ministry spokesman. The two countries have set a trade
target of 12 billion euros ($15.8 billion) for 2012.
Sarkozy is to visit Mumbai, India's financial and entertainment
capital, before returning home Tuesday.
