Russia to finance 85% of India's Kundankulam Nuclear Power Project

Russia will provide $3.4 billion to finance up to 85% of works, supplies and services for Units 3 and 4 of Kundankulam Nuclear Power Project.

This is based on the protocol signed between  A P Joshi, special secretary department of atomic energy, on behalf of the government of India, and S A Storchak, deputy minister of finance, in behalf of the Russian Federation.

The protocol also has provision for state export credit amounting to $ 800 million for financing upto 85% nuclear fuel and assemblies. The credit carries interest at 4% per annum. While the project credit is payable after four year with repayment commencing one year after commissioning of the project.

The fuel credit will be payable in four year with repayment commencing after 2 years of receipt. Out of the total estimated project cost of Rs 32,000 crore, Russia will provide state credit to the tune of Rs 17,000 crore.

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