Budget 2026-27 strengthens role of nuclear power as clean base-load option, says industry

New Delhi: Industry analysts said the extension of customs duty exemptions for nuclear power projects could improve project viability and reinforce nuclear energy’s role in India’s decarbonisation strategy. “The budget also provides BCD exemptions on import of goods required for all nuclear power plants till 2035,” said Ankit Jain of ICRA. “This measure can aid in the tariff competitiveness of nuclear power projects in India.”

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Budget extends exemptions across capacities

In the Budget 2026-27 speech, Sitharaman said the existing customs duty exemption for nuclear power projects would be extended till 2035 and expanded to cover all nuclear plants, irrespective of capacity.

“I propose to extend the 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,” said Finance Minister Nirmala Sitharaman in her Budget 2026-27 speech.

Industry sees nuclear as part of clean energy toolkit

Prashant Mathur of Saatvik Green Energy said the move reinforces a balanced energy transition strategy. “The long-term support for nuclear power underlines a technology-agnostic approach to decarbonisation,” he said, adding that nuclear power provides clean base-load capacity alongside intermittent renewables.

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