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India-Russia sign pact for funding nuclear power project

India and the Russian Federation have signed a protocol for funding two new units at the Kudankulam nuclear power projects in Tamilnadu. Mr. A. P. Joshi, special secretary, department of atomic energy and Mr. S. A.  Storchak, Deputy minister of finance of the Russian federation, signed the protocol.
Russia will extend an export credit of US$ 3400 million to Russian organizations to help build the units. The credit will comprise 85 percent of the value of works, supplies and services to be provided by them.

It has also provision for a state export credit amounting to US$ 800 million for financing up to 85% nuclear fuel control assemblies, The total estimated cost of the project is Rs. 32,000 crore. Out of this, Rs. 17,000 crore is expected to be met through the Russian state credit.

The repayment will commence one year after commissioning of the project while the fuel credit would be payable in four year and repayment will start after two years of receipt.

The Russian have been helping in the setting up of two, 1000 MW nuclear power reactor. The first unit to be commissioned shortly while the second unit will take another seven months to start.