The central government has decided to extend customs duty exemptions on select imports related to nuclear fuel and reactor components until September 30, 2035. The move aims to reduce project costs and support the expansion of nuclear energy capacity in the country.

The announcement was made in the Union Budget for the financial year 2026-27, which was later approved in Parliament by the Minister of State for Atomic Energy Jitendra Singh. This move is part of a larger strategy to develop nuclear power as a vital component of the country’s future energy landscape.

The objective behind this measure is to reduce the import costs for nuclear materials that are often imported due to their non-availability in the country. This may also help in reducing the cost of electricity for consumers if implemented.

This measure may also help in speeding up nuclear projects with the objective of making collaborations with foreign partners financially viable for nuclear projects.

These are related to India’s ongoing development of ten indigenous 700 MW pressurized heavy water reactors, in which domestic participation is expected to increase.

In addition, more funding is being provided for the Bhabha Atomic Research Center (BARC) for research in new and emerging areas of nuclear technology. This includes research into small modular reactors, hydrogen production, and isotope production for cancer therapy.

The new policy is also in line with India’s long-term vision of achieving 100 GW of nuclear power generation capacity by 2047. As part of this vision, India’s government has announced a new Nuclear Energy Mission, which is for an outlay of ₹20,000 crore. This mission aims at operationalizing indigenous small modular reactors and introducing reforms in regulations for private participation in nuclear energy.

In the Budget speech announcing the extension of duty exemptions, Finance Minister Nirmala Sitharaman stated the move was aimed at providing policy stability for the sector. Dr. Jitendra Singh further stated in the Parliament that the move would enable the reduction of both the cost of projects and the cost of electricity, making the overall feasibility of nuclear energy projects more economically viable.

Although the policy reduces the need for reliance on import costs in the short term, the fact that it also promotes local manufacturing and research points to a duality.