Power production technologies based on fusion belong to the class with low "external" costs, comparable with solar and wind based technologies. In the last decade, several models have been developed to estimate the cost of power produced by fusion-based technology. The direct costs of energy production, the breakup of which is shown in Figure 1, can be estimated fairly accurately and is expected to be in the range of 45-90 milliUS$/kWh (1995 values), with a most probable value of 63milliUS$/kWh (about Rs.3.00/kWh) which is very comparable to today's prices. Moreover, the collective construction and operation experience is expected to lead to considerable cost reduction due to accumulated learning processes. Thus as more and more reactors are built, the resulting energy cost is expected to reduce. The projected cost reduction with time after commercial exploitation starts is shown in Figure 2.