Union Minister Jitendra Singh said the government’s decision to allow zero customs duty on imports for nuclear power projects will significantly boost capacity addition and reduce electricity costs in India.
In a written reply in the Lok Sabha, he stated that duty-free imports of nuclear fuel and reactor components until 2035 will make nuclear projects more economically viable, especially those involving foreign collaboration.
Faster Execution and Lower Electricity Costs
According to the minister, the policy will:
- Accelerate project execution timelines
- Reduce overall capital costs
- Lower per-unit electricity tariffs
This is particularly beneficial for projects that depend on imported components and advanced technology.
Strengthening Domestic Manufacturing Ecosystem
The government is also focusing on building domestic capabilities in the nuclear sector.
The Nuclear Power Corporation of India Limited (NPCIL) is working to strengthen the supply chain for 10 newly approved 700 MW Pressurised Heavy Water Reactor (PHWR) units.
Key initiatives include:
- Bulk procurement to ensure continuity
- Expansion of vendor base
- Promotion of indigenous manufacturing
- Encouraging MSME participation through vendor meets and preferential bidding
Focus on Research and Innovation
At the Bhabha Atomic Research Centre, enhanced funding is being directed toward advanced research and development.
Priority areas include:
- Development of new research reactors
- Isotope production for cancer treatment
- Small Modular Reactors (SMRs)
- Hydrogen production technologies
- Advanced materials, lasers, and accelerator systems
Boost to Self-Reliance in Nuclear Technology
The combined push for duty-free imports and domestic manufacturing is expected to strengthen India’s position in nuclear energy while promoting self-reliance.
No Integration with PM Gati Shakti Yet
The minister clarified that there is currently no proposal to integrate nuclear park infrastructure with the PM GatiShakti framework, particularly for upcoming projects in coastal regions.
Driving Clean Energy and Energy Security
The policy is expected to play a key role in expanding India’s clean energy capacity, reducing dependence on fossil fuels, and ensuring long-term energy security.
