Budget: Govt extends imports tax waiver for N-equipment till 2035; duty sops for processing critical mineral

NEW DELHI: Giving a big push to the nuclear energy sector, FM Nirmala Sitharaman on Sunday recommended an extension of existing basic customs duty exemption on imports of goods required for nuclear power projects till the year 2035 and expand it for all nuclear plants irrespective of their capacity. The Budget also proposes to provide basic customs duty exemption to the import of capital goods required for processing of critical minerals in India.

The FM has recommended reduction of the customs duty to zero for all goods required for generation of nuclear power, including control and protector absorber rods and burnable absorber rods. The exemptions show that govt has renewed its support to the nuclear industry, with an ambitious target to reach 100 GW of nuclear power generation capacity by 2047, an 11-fold jump from now. Currently, India operates 24 nuclear reactors with a combined capacity of 8,780 MW as of 2025, and nuclear energy accounts for just 3% share of the total electricity mix.




The announcement is significant in the wake of the govt last Dec passing in Parliament the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, which overhauled India's nuclear sector by allowing private firm participation and removing direct liability for equipment suppliers.

The removal of customs duty on nuclear project imports will directly affect components, equipment and specialised machinery that domestic manufacturers like MEIL, L&T, BHEL currently import to build nuclear units or their supporting infrastructure. By lowering input costs, the policy is expected to enhance the competitiveness of India’s nuclear supply chain, improve cost structures for project developers and potentially attract international original equipment manufacturers to partner with Indian entities.

The govt will also offer import tax exemptions on overseas purchase of machinery for making lithium-ion battery cells for energy storage systems. It will also offer an exemption for the import of sodium antimonate, used in making the glass for solar panels, Sitharaman said. Local manufacturing of clean energy gear is among the govt’s top priorities to help the economy reduce its dependence on imports.

Reacting to the Budget announcement, MoS for atomic energy Jitendra Singh said, “I see this as a futuristic budget—one that, though annual in nature, lays out a clear roadmap for the next 25 years leading up to 2047 and the vision of a developed India. It strongly reflects the PM’s vision and is driven by structural reforms, technology-led growth, and future-oriented economic planning.”