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India Extends Nuclear Import Duty Exemptions to 2035, Zeroes Tariff on Key Reactor Items

The budget move lowers equipment costs to support private entry under the new SHANTI law.

Overview

  • Finance Minister Nirmala Sitharaman extended the basic customs duty exemption on goods for nuclear power projects to 2035 and expanded it to cover all plants regardless of capacity.
  • The basic customs duty on items under tariff code 8401 30 00 — including nuclear reactors, non‑irradiated fuel elements, and absorber rods — was cut from 7.5% to zero.
  • To qualify for the duty treatment, projects must be registered with the Customs House under the Project Import Regulations, 1986, by 30 September 2035.
  • The SHANTI law enacted in December opened the sector to Indian private companies as the government retains control over fuel supply, safety and compliance infrastructure, and uranium and thorium mining.
  • Analysts say the measures could lower project costs, encourage Light Water Reactor imports similar to Kudankulam, and support the goal of 100 GWe by 2047 from about 8.8 GWe today.