It is reported that shortage of uranium and a shut down at four plants dragged down revenues and profit of Nuclear Power Corporation of India Limited for the fiscal ended March 2008. Its net profit dipped by 31% YoY INR 1,078 crore from INR 1,570 crore and income from operations declined by 7% YoY to INR 3,333 crore from INR 3,592 crore.

Mr S Thakur executive director of corporate planning at NPCIL said that due to insufficient uranium supply, power production for the year fell to about 16,960 million units in 2007-08 from 18,000 million units the previous year.

Mr Thakur said that the lack of uranium supply was compounded by the shut down of Narora I, Kaiga III, Rajasthan II and Madras I plants. These 220 MW plants are under going technical up gradation. He added that the average plant load factor has decreased to 60% from 90% achieved last year. The 220 MW plants are now running at 150 to 160 MW so as to optimally use uranium.

He said that some of the uranium mining projects have been hampered due to delay in getting environmental clearances and also on account of the difficult terrain in which the mines are located. A new uranium mill, which was to go online, has also been delayed.

Mr Thakur said the earnings of the corporation have also been affected due to tariff reduction. Per unit tariff which was INR 2.70 in 2006-07, has reduced to INR 2.28 per unit in 2007-08 and the benefits passed to the customers. He added that "As the tariffs are decided for 5 years there is no provision to increase it. It has been affected by employee attrition too."