Indian nuclear firms told to keep options open

MUMBAI (Reuters) - Indian firms should not sign deals with foreign nuclear power firms that restrict their ability to supply to others as the government wants a thriving domestic industry, the country's atomic energy head said.

Anil Kakodkar said there was huge potential for Indian companies to expand in the equipment supply and construction segment, given India's experience in developing technologies for its reactors.

"Don't compromise on your IPRs (intellectual property rights)," Kakodkar, chairman of India's Atomic Energy Commission, said at an industry conference on Friday.

"In setting up agreements, you should not forego opportunities for making equipment for other segments of the nuclear market."

Reactors worth $15 billion could be ordered by 2020, and about $150 billion over the next few decades, the industry estimates, as Asia's third-largest economy suffers peak hour power deficit of 16 percent.

India signed a civilian nuclear co-operation agreement with the United States last year. Nuclear power firms including General Electric, Toshiba and France's Areva are keen to partner Indian firms, expecting large orders from the power-deficient nation.

"The Department of Atomic Energy has been telling all prospective foreign vendors to deal with Indian industry to maximise domestic value addition," Kakodkar said.

"Not just for domestic demand, India will also clearly become a supply base for the global nuclear market," he said.

Kakodkar said the world's uranium resources would be tied up by 2050 and nuclear plants would then have to adopt recycling technologies, in which India already has extensive experience.