France and India are likely to sign a framework contract during President Nicolas Sarkozy's visit to India for the sale of at least two French atomic reactors but a final deal could take another six months, a French source said on Sunday.
The deal for French nuclear group Areva to supply two reactors estimated at around 7 billion euros ($9.4 billion) is one of several Sarkozy is chasing on his four-day visit to the emerging Asian giant.
Areva has signed a memorandum of understanding with the Nuclear Power Corp of India (NPCIL) for the sale and India has given the green light for construction. "What we have agreed to say with our Indian partners is that decisive progress has been made (on the deal) and therefore a point of no return has been reached towards the final signing of contracts," said a French source, who declined to be identified.
DEFENCE DEALS
Sarkozy also wants to win the support of Indian Prime Minister Manmohan Singh's government to push an ambitious agenda for the G20 group of nations, which France currently heads, including the reform of the global monetary system. As US President Barack Obama did in November, Sarkozy has pleased his audience with a pledge to support a long-standing Indian demand for a permanent seat at the UN Security Council alongside France, Russia, China, Britain and the United States.
Indian officials have also given France "reasons to be confident" the two sides would reach consensus on India's nuclear liability laws, the source said, which have in the past made foreign firms wary of entering the Indian market. Sarkozy wants to give French firms a bigger share of India's lucrative defence market, including a contract to supply 126 fighter jets to India's air force. There is also a smaller deal that could be sealed soon for defence electronics group Thales to modernise 51 Mirage 2000 planes. The French president, who arrived in India on Saturday, heads a delegation of 50 senior businessmen as well as cabinet officials including Economy Minister Christine Lagarde.