Union Finance Minister Nirmala Sitharaman has announced the extension of basic customs duty exemptions on imports required for nuclear power projects until 2035. The move aligns with the government’s target of scaling India’s atomic energy capacity to 100 GW by 2047, positioning nuclear power as a critical pillar of the country’s low-carbon baseload strategy.
Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman said the existing basic customs duty exemption on imports required for nuclear power projects will be extended till 2035 and expanded to cover all nuclear plants irrespective of their capacity.
The Budget announcement follows recent legislative action during the Winter Session of Parliament, where the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) law was passed. The new law opens the door for private sector participation in India’s traditionally tightly regulated civil nuclear sector, marking a structural shift in the governance of atomic energy development.
“I propose to extend the existing basic customs duty exemption on imports of goods required for Nuclear Power Projects till the year 2035 and expand it for all nuclear plants irrespective of their capacity,” Sitharaman said in her Budget speech.
The Finance Minister also outlined plans to support mineral-rich states—Odisha, Kerala, Andhra Pradesh, and Tamil Nadu—in setting up dedicated Rare Earth Corridors aimed at boosting mining, processing, research, and manufacturing capabilities.
In the Union Budget, the Finance Ministry allocated Rs 24,123.92 crore to the Department of Atomic Energy, with Rs 9,966.41 crore earmarked for capital expenditure.
Welcoming the proposal, Dr Pawan Goenka, Chairman of the Steering Committee on Advancing Local Value-Add and Exports (SCALE), said that the establishment of Rare Earth Corridors is a timely step towards securing critical materials and strengthening domestic value chains. He added that targeted customs duty exemptions supporting domestic manufacturing and supply-chain integration would help create a more competitive and resilient economy, enabling long-term investment confidence.
As of 2025, India operates 24 nuclear reactors with a total installed capacity of around 8,780 MW. While nuclear energy currently accounts for nearly three per cent of the national energy mix, the government views it as a key enabler of clean, reliable baseload power. India has set interim targets of reaching 22 GW of nuclear capacity by 2032, alongside a strong push for the development and deployment of small modular reactors, on the path to achieving 100 GW by 2047.
