Indian Economy News

Zero Customs Duty to Transform Nuclear Energy Economics, Union Minister of State Dr. Jitendra Singh

The Government of India has announced a significant policy measure to strengthen the country’s nuclear energy sector by granting zero customs duty on the import of goods required for nuclear power projects. As per the statement by Union Minister of State Dr. Jitendra Singh in a written reply in the Lok Sabha, this move is expected to accelerate project execution timelines and substantially reduce both capital costs and the per-unit cost of electricity generation. The provision, applicable until 2035, is particularly beneficial for projects involving foreign collaboration and high import content, thereby improving the overall economic viability of nuclear energy in India.

In parallel, the government is taking steps to enhance domestic capabilities and promote self-reliance in the sector. The Nuclear Power Corporation of India Limited (NPCIL) is strengthening the supply chain for ten newly approved 700 MW Pressurised Heavy Water Reactor (PHWR) units by expanding the vendor base, placing bulk procurement orders, and encouraging indigenous manufacturing. Special emphasis is being placed on MSMEs through vendor development initiatives and preferential procurement policies. Additionally, increased funding for research and development at the Bhabha Atomic Research Centre (BARC) is being utilised for advanced technologies such as small modular reactors, hydrogen production, isotope applications for cancer treatment, and advanced materials. These initiatives collectively aim to position India as a technologically advanced and self-reliant player in nuclear energy development.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.