The government has exempted customs duty on the import of key components and fuel required for nuclear power projects till 2035, a move aimed at reducing project costs and improving the viability of nuclear energy in the country.
In a written reply to the Lok Sabha, Minister of State for Atomic Energy Jitendra Singh said the exemption is expected to lower both overall project costs and the per-unit cost of electricity, particularly for projects involving foreign collaboration with high import content.
The move is likely to accelerate execution timelines for such projects while improving their financial viability.
This comes as India seeks to expand nuclear capacity to provide stable, low-carbon baseload power alongside intermittent renewable energy sources.
The government also outlined steps to strengthen the domestic supply chain for the recently approved 700 MW Pressurised Heavy Water Reactor (PHWR) units. These include bulk procurement, expansion of the vendor base, promotion of indigenous equipment, and increased participation of MSMEs.
The minister said enhanced funding for research and development at the Bhabha Atomic Research Centre (BARC) is being utilised for advanced technologies such as small modular reactors (SMRs), hydrogen production and next-generation reactor systems.
