Turboatom Involved in Indian Generator Malfunction Investigation

The Indian Nuclear Power Corporation announced that Turboatom (TATM: U/R), as a general contractor on the project, should pay for damages resulting from an equipment malfunction at the Kaiga nuclear power plant. The Indian company is seeking to recoup USD 37.3 mln in losses (more than half of Turboatom’s annual sales). According to Turboatom’s CEO Viktor Subotin, the company has not yet received an official claim from Kaiga. Inna Perepelytsya: According to Subotin, the turbine and generation equipment at the power plant was working in a testing regime and had not yet been commissioned. Subotin said that the problem was with a generator supplied by the subcontractor, Elektrotyazmash, a Ukrainian state company. The procedure for legal action and compensation is outlined in the company’s contract, the details of which have not been disclosed. Based on the information we have, we expect that the equipment will be repaired by Turboatom and Elektrotyazmash, and that the Indian plant will not initiate sanctions.