UPDATE 1-Areva submits Indian nuclear reactors bid

* Submits a bid for the construction of two EPR reactors

* Agreement with Tata for the supply of engineering services

* Forms alliance with Bharat Forge

(Adds detail, background)

PARIS, July 10 (Reuters) - French nuclear reactor maker Areva (CEPFi.PA) announced new development plans for India on Friday, including a proposal to build new state-of-the-art EPR reactors and an engineering pact with conglomerate Tata.

State-controlled Areva said it had submitted a bid to Indian utility NPCIL to design and build two EPR nuclear reactors, each with an output in excess of 1,600 megawatts.

Areva added it had set up alliances with Bharat Forge (BFRG.BO) and Tata Sons unit TCE Consulting Engineerings Ltd.

"Areva's bid for the construction of two EPR reactors and these various agreements confirm the group's desire to expand its activities in India, one of the world's most dynamic economies which needs to rapidly increase its production capacity to meet its ever-growing energy needs," it said in a statement.

Areva's supervisory board approved plans last month to sell one of Areva's key businesses to bridge a $15.5 billion funding gap. [ID:nLU456060].

Areva needs the funds to remain at the forefront of the nuclear industry as countries such as Britain and the United States look to expand their atomic programmes to ensure a ready supply of energy as fossil fuels become more scarce.

Areva's investment certificates closed down 1.3 percent at 380 euros on Friday.

(Reporting by Sudip Kar-Gupta, editing by Marcel Michelson)