India and US has been involved in discussion with Toshiba's US based Westinghouse since 2005 when both the countries signed highly controversial nuclear deal. India had accorded ‘in principle' approval for the site at Kovvada in southern state of Andhra Pradesh for setting up six Light Water Reactors project. Currently, both countries are engaged in discussions on the techno-commercial aspects of the project.
Uncertainty begins following last week revelations that losses and write-downs have forced Toshiba to rule out of future nuclear construction bids around the world.
Earlier, Indian government had asked western nuclear manufacturers to show a functional nuclear plant to prove they can set up a similar plant in India which Westinghouse does not posses. India had cancelled a proposal made by GE Hitachi economic simplified boiling water reactor (ESBWR) units in Kovvada because the company could not provide reference plant to the Indian government.