AERB clueless about industry blacklist

Press release - December 10, 2014
New Delhi/Chennai/Mumbai | December 10, 2014 | Despite evidence of corruption and malpractice, AERB has not taken any action. Right to Information (RTI) application filed by Greenpeace reveals that Atomic Energy Regulatory Board (AERB) has not blacklisted any nuclear equipment supplier or a manufacturer since its formation. This is despite numerous incidents and accidents across nuclear power plants in India. The RTI application was filed on October 21, 2014 and the reply from NPCIL is dated November 25, 2014.

“We filed an RTI application to the nuclear regulator (AERB) and they forwarded it to NCPIL as well as the Department of Atomic Energy (DAE). The application filed to DAE was also forwarded to NPCIL who finally answered” said Hozefa Merchant, Energy Campaigner for Greenpeace. “This clearly shows that the regulator is clueless and that the nuclear industry is operating in India with impunity”.

The application filled by Greenpeace to AERB was transferred to DAE and NPCIL under section 6

(3) of the Right to Information Act, 2005. The section 6 (3) of RTI Act is applied to applications that seek information which is held by another public authority. “The fact that the regulator does not have any information about blacklisted companies itself raises a serious concern of its effectiveness. Seems like AERB has been reduced to a mere facade to support and cover-up NPCIL’s mistakes” said Mr. Merchant.

In its RTI application, Greenpeace had asked for the names of nuclear components manufacturers and suppliers that have been blacklisted. NPCIL replied stating, “... It is informed that, NPCIL have not blacklisted any nuclear component manufacturer/supplier companies since its formation, till date as per available record in NPCIL.” (1)

AERB and NPCIL have been in operation for past 31 years. It is responsible for building and operating 21 nuclear power plants across India. Some of these plants have seen glaringly ridiculous accidents such as the fire at Kaiga nuclear plant and the collapsing of its dome during construction. As well as the explosion at Kudankulam nuclear plant which left 6 workers with serious injuries. Kudankulam nuclear reactor no. 1 was recently shutdown due to problems related to its turbine. Despite these accidents and incidents, not a single company has been blacklisted. If a thorough investigation had been carried out, it would have resulted in blacklisting of the company that constructed the dome of Kaiga nuclear plant with low quality raw material.

“Both Indian and foreign companies acting with impunity pose a threat to the Indian people and our environment. Foreign companies such as GE, Areva, Rosatom and its subsidiary ZiO-Podolsk as well as Kharkov Electromechanical Plant have been involved in major accidents and scandals around the world, yet they haven’t been investigated or blacklisted” said Mr. Merchant. ZiO-Podolsk, a subsidiary of Rosatom, supplied equipments for Kudankulam nuclear plant (2).

In 2012, the Procurement Director of the company was arrested and charged with corruption and embezzlement of funds. It was found that ZiO-Podolsk was procuring low quality cheaper steel to manufacture important components for nuclear power plants. The difference in the money was pocketed and the compliance certificates were forged. (3)

ZiO-Podolsk case was not the only one of its kind. In 2007, workers at the Kalinin nuclear power plant in Russia noticed that some of the recently manufactured power switches had the on and off sides marked the wrong way around. A closer examination showed a number of defects in equipment arriving from the Kharkov Electromechanical Plant. When confronted with the problems, it turned out that the Kharkov plant had not manufactured some of the parts. Instead, an intermediary had been forging the certificates and buying cheaper parts from somewhere else to increase profit margins. (3)

“Despite evidence of malpractice and corruption, the Indian nuclear regulator has yet not blacklisted any of these companies. This goes to show the incompetence as well as the ineffectiveness of the nuclear regulatory system in India. This also explains delays with the commercialisation of Kudankulam nuclear power plant” concluded Mr. Merchant.

Notes to Editor:

1. RTI

2. Annual report 2010  and Annual report

2011 - Page 91


3. ZiO Podolsk and Kharkov Electromechanical Plant

4. NPCIL response to RTI

For more information on the issue, contact:
Hozefa Merchant, Campaigner, , +91 9560706856

For photo, video and other media related queries, contact:
Pari Trivedi, Communications Specialist, , +91 9873495994
Munna Jha, Communications Specialist, , +91 9570099300

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