02 February 2026 at 11:37 pm IST
In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced that the basic customs duty exemption on imported goods used for nuclear power projects will be extended until 2035. This exemption, previously available under certain conditions, will now apply to all nuclear plants regardless of their capacity, providing long-term certainty for developers and investors in the sector. The move is part of the government’s plan to significantly expand India’s nuclear energy capacity, which currently accounts for a small share of total electricity generation. Officials have reiterated the goal of scaling nuclear capacity toward long-term targets as part of a cleaner and more diversified energy mix. Alongside the duty extension, the Budget highlighted broader energy and industrial policy measures. Notably, the government is promoting Rare Earth Corridors in mineral-rich states to bolster domestic mining and processing, reduce strategic dependencies, and support advanced manufacturing ecosystems. Industry analysts welcomed the customs duty extension, saying it strengthens the economic viability of nuclear infrastructure by lowering upfront costs and improving competitiveness in long-term project planning. This aligns with India’s broader efforts to attract investment and achieve energy security and climate objectives.
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