Iran on Saturday began the construction of a nuclear power plant in the southern port city of Bushehr.

The new power plant will be part of the plan to develop Iran's first commercial nuclear reactor, reports Xinhua.

According to local media reports in Iran, at a ceremony attended by senior Iranian and Russian officials, head of the Atomic Energy Organisation of Iran Ali Akbar Salehi said: "We are opening a new page in the trend of our peaceful industrial nuclear activities."

He also said the project will be carried out within the framework of the Safeguards Agreement with the International Atomic Energy Agency and in line with the Non-Proliferation Treaty.

On September 1, Salehi said Iran and Russia had agreed to build two nuclear power plants in Bushehr.The construction, with an estimated cost of $10 billion (Rs 6.7 lakh crore), would be completed in 10 years and by building these two power plants, Iran would save 22 million barrels of oil per year, he said.

The construction of the other power plant will be launched in 2018.

Image for representation only.