Finance Minister Nirmala Sitharaman proposed extending basic customs duty exemption on imports for nuclear power projects until 2035, expanding coverage to all nuclear plants regardless of capacity. This strategic measure accelerates clean energy capacity addition and supports India’s energy security goals.
Comprehensive Nuclear Ecosystem Support
The exemption covers critical equipment, components, and capital goods essential for reactor construction, operation, and maintenance across small modular reactors (SMRs) and large plants. Removing capacity restrictions unlocks domestic nuclear expansion, including private sector participation and indigenous technology deployment.
Clean Energy Transition Acceleration
This 10-year duty holiday reduces project costs by 10-15%, making nuclear power competitive with solar/wind while providing baseload reliability for industrial growth. It complements Budget 2026’s green freight corridors, CCUS funding, and renewable missions, balancing India’s net-zero pathway with energy sovereignty.
The reform positions nuclear as a cornerstone of Viksit Bharat’s sustainable development, targeting 22 GW capacity by 2031 and 100 GW by 2047 through accelerated project commissioning.
