Duty-Free Imports to Cut Nuclear Power Costs, Boost Expansion

The exemption—applicable to nuclear fuels and reactor components until 2035—is expected to improve project viability, particularly for projects involving foreign collaboration and high import content.

The government’s decision to allow zero customs duty on imports for nuclear power projects is set to significantly accelerate India’s nuclear energy expansion while reducing electricity costs, Union Minister Dr. Jitendra Singh informed Parliament.

The exemption—applicable to nuclear fuels and reactor components until 2035—is expected to improve project viability, particularly for projects involving foreign collaboration and high import content.

Lower Costs, Faster Project Execution

Responding in the Lok Sabha, Dr. Singh said the policy will:

• Reduce overall project costs

• Lower per-unit electricity tariffs

• Improve financial viability of nuclear projects

• Encourage faster deployment of nuclear capacity

The move is seen as a strategic step to scale up clean, reliable base-load power as India transitions toward a low-carbon energy mix.

Boost to Domestic Manufacturing Ecosystem

While enabling imports, the government is simultaneously strengthening domestic capabilities.

The Nuclear Power Corporation of India Limited (NPCIL) has initiated multiple measures to support the 10 newly approved 700 MW Pressurised Heavy Water Reactor (PHWR) units, including:

• Bulk procurement orders to ensure supply continuity

• Expansion of vendor base across industries

• Promotion of indigenous manufacturing and import substitution

• Reservation of key equipment for Class-1 local suppliers

• Vendor development initiatives, especially targeting MSMEs

These steps aim to balance cost efficiency with self-reliance goals under Aatmanirbhar Bharat.

Expanded R&D Push at BARC

The government is also increasing investment in advanced nuclear research through the Bhabha Atomic Research Centre (BARC).

Key focus areas include:

• Development of next-generation reactors

• Expansion of isotope production, particularly for cancer treatment

• Research on Small Modular Reactors (SMRs)

• Hydrogen production technologies

• Accelerator and laser-based applications

• Advanced materials and manufacturing

This R&D push is aimed at positioning India as a leader in advanced nuclear technologies.

Strategic Role in Clean Energy Transition

Nuclear energy is increasingly viewed as a critical component of India’s energy strategy due to its:

• Low carbon emissions

• Reliable, continuous power generation

• Ability to complement intermittent renewable sources

The duty exemption is expected to support India’s broader goals of:

• Reducing dependence on fossil fuels

• Expanding clean energy capacity

• Enhancing energy security

No Integration Yet with PM Gati Shakti

Dr. Singh clarified that, at present, there is no proposal to integrate the PM Gati Shakti framework with logistics and construction of upcoming nuclear parks in coastal states.

Balancing Imports and Self-Reliance

The policy reflects a dual approach:

• Short-term: Reduce costs through duty-free imports

• Long-term: Build a strong domestic nuclear supply chain

By combining affordability, innovation, and localisation, the government aims to accelerate nuclear capacity addition while ensuring sustainability and competitiveness.