Punj Lloyd has signed an agreement with the Indian nuclear engineering unit, Nuvia India, to form a joint venture to capitalize on an expected demand surge for nuclear energy-related services in India.
The joint venture will focus on providing services to the Indian nuclear energy sector and may expand its offerings to the global market, according to a Wall Street Journal report.
Once the India-US civilian nuclear deal is completed, it will be an end to an international moratorium on nuclear trade with India that was put on hold after the country’s first atomic-weapons tests in 1974.
It would also open up the market for nuclear reactor providers, such as General Electric and Westinghouse Electric, as India looks to generate nuclear power to bridge its widening supply gap in electricity.
Punj Lloyd and Nuvia will hold equal stakes in the new venture.
Punj Lloyd said that the companies are working on the size of investment and the process will be completed in 120 days.
The joint venture company will be based at Gurgaon near New Delhi.