Government owned companies, the Nuclear Power Corporation of India (NPCIL) and NTPC would jointly work for setting up nuclear power plants, in a bid to over come shortage of power, indispensable to propel economic and industrial growth of the country.

The MoU was signed by NPCIL Chairman and Managing Director, S. K. Jain and NTPC Chairman and Managing Director, R. S. Sharma in the presence of Union Minister of State for Power and Commerce Jairam Ramesh and Anil Kakodkar, the Atomic Energy Commission Chairman of country.

Mr. Jain said, "The joint venture will have 70:30 debt equity ratios, in which the partners would hold Rs 5,000 crore in equity. The balance would be raised from the market."

Both companies, as per memorandum of understanding (MoU), would develop nuclear power generation plans under the framework of Atomic Energy Act. Nuclear Power Corporation of India to hold 51 per cent stakes in the joint venture, to be formed within three months, while NTPC would hold the remaining stake.

Commenting on the deal, Mr Jairam Ramesh said, "This unique initiative will also shape up the country's plans to achieve the target to produce 20,000 MW of nuclear energy by 2020."

He hailed the collaboration between major PSUs and said that the move would pave a way to make India as an energy surplus state and make a strong foundation for future export of nuclear technology by India.