Union Budget 2026 Proposes Extension of Customs Duty Exemption for Nuclear Project Imports
In a significant move to bolster India's nuclear energy sector, Finance Minister Nirmala Sitharaman has proposed extending the customs duty exemption on imports of goods required for nuclear projects until 2035. This announcement was made as part of the Union Budget 2026 presentation, highlighting the government's continued commitment to advancing nuclear power infrastructure.
Enhanced Budget Allocation for Nuclear Power Projects
The Centre has sanctioned a substantial allocation of Rs 2,500 crore for nuclear power projects in the current fiscal year. This marks a notable increase from last year's budget estimates, which were initially set at Rs 2,086 crore but were later revised down to Rs 1,333 crore. The enhanced funding underscores the strategic importance placed on nuclear energy in India's energy mix.
The extension of the customs duty exemption is expected to facilitate smoother and more cost-effective imports of critical components and materials necessary for nuclear projects. This policy measure aims to reduce financial burdens on project developers and accelerate the implementation of nuclear power initiatives across the country.
Implications for India's Energy Security and Economic Growth
The proposed measures in the Union Budget 2026 are poised to have far-reaching implications:
- Boost to Nuclear Energy Sector: By extending the duty exemption, the government aims to incentivize investments in nuclear power, which is crucial for meeting India's growing energy demands and reducing carbon emissions.
- Financial Support: The increased budget allocation from Rs 1,333 crore in the revised estimate of the previous year to Rs 2,500 crore this year reflects a strong financial backing for nuclear projects, potentially leading to faster project completions.
- Strategic Alignment: These steps align with India's broader goals of enhancing energy security and promoting sustainable development through clean energy sources.
Overall, the Union Budget 2026 initiatives signal a proactive approach by the government to strengthen the nuclear power sector, leveraging fiscal policies and funding to drive progress in this critical area of infrastructure development.
