Ahead of Prime Minister Narendra Modi’s visit to Paris, France hopes to make progress with India on the nuclear deal for the power plant in Jaitapur, Maharashtra. The project, to be implemented by French company Areva, has been stuck for some time over differences relating to cost of power to be produced. Both sides are expecting a political nudge, just as it happened in the case with the US.
The French side has been insisting that the cost should be in the range of Rs9-9.50 per unit but India wants it to be lowered to Rs6-6.50 per unit. However, sources in the French Government said the issue is expected to be high on the agenda of talks between Modi and French President Francois Hollande along with discussions on Defence, investment, space, railways and creating Smart Cities.
Modi will visit France as part of his three-nation tour that will also include Germany and Canada from April 9 to 16.
“We are working hard to find progress on this project. Things are working,” said French Ambassador to India, Francois Richier on Tuesday. He exuded confidence that the deal should get going soon given the fact Modi himself spoke about the importance of nuclear power as part of renewable energy in meeting climate change challenges.
Sources said negotiations are also on for the Rafale deal under which French company Dassault Aviation will supply 126 Rafale fighter planes even though it will take some time for the deal to materialize. But as France “awaits a positive outcome” on the Rafale deal, a Defence co-operation agreement is on the cards under the Make in India concept during Modi’s visit.
With over $19 billion investment in India in 2014 through 400 French companies, France is also looking at more investments from India, given the fact it is far less than the Chinese investment in France. “Indian investment in France has not been very impressive. There is trade imbalance which needs to be corrected,” Richier said. He added the French business community is encouraged by the reforms carried out by the new Government in India.
During his visit, Modi will meet political and business leaders of France. He will also visit the Airbus manufacturing base and will pay homage to Indian soldiers at a memorial. 9,000 Indian soldiers had died during World War I while fighting with France against Germany. Modi will also visit one of the Smart Cities of France.