**Executive Summary**
This report outlines the Government of India’s measures to enhance nuclear energy economics as presented by Dr. Jitendra Singh in the Lok Sabha on March 18, 2026. Key initiatives include the exemption of customs duty on nuclear imports until 2035 and increased funding for research to lower electricity costs and accelerate project execution. The document also details strategies to strengthen the domestic supply chain and achieve technological self-reliance.
**Key Points / Main Content**
**Customs Duty and Economic Viability**
* Zero customs duty has been applied to imports of nuclear fuels and reactor components to reduce overall project costs.
* The exemption, valid until the year 2035, aims to lower the per-unit cost of electricity and improve the viability of projects involving foreign cooperation.
* These fiscal measures are intended to accelerate the pace of nuclear energy development across the country.
**Domestic Supply Chain Strengthening**
* Nuclear Power Corporation of India Limited (NPCIL) is implementing measures to support ten newly approved 700 MW Pressurized Heavy Water Reactor (PHWR) units.
* Strategies include placing bulk orders to ensure supply continuity and expanding the vendor base.
* The government is promoting indigenous equipment to substitute imports and reserving specific equipment categories for class-1 local suppliers.
* Micro, Small, and Medium Enterprises (MSMEs) are being encouraged through dedicated vendor meets and preferential treatment in bidding processes.
**Research and Development Focus**
* Increased funding for the Bhabha Atomic Research Centre (BARC) is directed toward achieving multidisciplinary technology self-reliance.
* Key R&D focus areas include the development of Small Modular Reactors (SMRs) and new research reactors.
* Funding is also allocated for isotope production facilities for cancer treatment, hydrogen production, accelerator technologies, and advanced manufacturing materials.
**Logistics and Infrastructure**
* The Minister confirmed there is currently no proposal to integrate the PM Gati Shakti framework with the construction and logistics of nuclear parks in coastal States.
**Impact Analysis**
**Nuclear Power Corporation of India Limited (NPCIL)**
**Impact**
NPCIL is responsible for executing the expansion of the domestic reactor fleet and managing the supply chain for new PHWR units.
**Action Required**
Must place bulk orders, expand its vendor base, and organize meets to integrate MSMEs and local suppliers into the nuclear sector.
**Domestic MSMEs and Class-1 Local Suppliers**
**Impact**
These stakeholders gain a competitive advantage through reserved equipment categories and bidding preferences.
**Action Required**
Engage in the procurement process for indigenous equipment and participate in vendor meets to support import substitution.
**Bhabha Atomic Research Centre (BARC)**
**Impact**
BARC is the primary recipient of enhanced R&D funding for advanced nuclear technologies.
**Action Required**
Utilize increased allocations to develop SMRs, isotope production facilities, and other multidisciplinary technologies to ensure national self-reliance.
**Nuclear Project Developers (Foreign Cooperation)**
**Impact**
Developers of projects with substantial import content will see improved economic viability due to tax exemptions.
**Action Required**
Utilize the zero customs duty window (up to 2035) to import necessary fuels and components to reduce project and electricity generation costs.
Key Entities Referenced
Customs Duty Exemption on Nuclear Fuels and Reactor Components: A policy measure effective until 2035 designed to reduce nuclear project costs and electricity tariffs by eliminating import duties.
Nuclear Power Corporation of India Limited (NPCIL): The primary agency responsible for executing nuclear power projects and strengthening the domestic supply chain for the ten newly approved 700 MW PHWR units.
700 MW Pressurized Heavy Water Reactor (PHWR): A domestic nuclear power program consisting of ten newly approved units being developed through bulk orders and indigenous equipment substitution.
Bhabha Atomic Research Centre (BARC): The premier research institution focused on multidisciplinary technology development, including isotope production for cancer treatment and new research reactors.
Small Modular Reactors (SMRs): An advanced nuclear technology initiative identified as a key focus area for research and development to achieve self-reliance.
Department of Atomic Energy
Zero Customs Duty to Transform Nuclear Energy
Economics, Dr Jitendra Singh Tells Lok Sabha in
Written Reply
Dr Jitendra Singh Says Duty-Free Nuclear Imports Will Enable
Faster Project Execution and Lower Electricity Costs
Posted On: 18 MAR 2026 3:23PM by PIB Delhi
Zero customs duty on the import of goods required for nuclear power projects is set to accelerate the pace
of nuclear energy development in the country while also bringing down the overall project cost and per-
unit cost of electricity, making such projects more viable, particularly those involving foreign cooperation
with substantial import content.
Replying in writing to an unstarred question in Lok Sabha, asked by Shri Ramesh Awasthi and Shri Ravi
Kishan, Union Minister of State (Independent Charge) for Science & Technology, Earth Sciences, and
MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr. Jitendra Singh
provided details of the Government’s measures in the nuclear energy sector.
The Minister stated that the exemption of customs duty on nuclear fuels and reactor components up to the
year 2035 will contribute to reducing both project costs and electricity generation costs, thereby improving
the economic viability of nuclear power projects.
On strengthening the domestic supply chain for the ten newly approved 700 MW Pressurized Heavy Water
Reactor (PHWR) units, the Minister informed that Nuclear Power Corporation of India Limited (NPCIL)
has taken several steps. These include placing bulk orders to ensure continuity, expanding the vendor base
with necessary support, promoting indigenous equipment for import substitution, reserving certain
equipment for class-1 local suppliers, and organising vendor meets with a focus on encouraging MSMEs
and giving them preference in bids.
Regarding enhanced funding for research and development at Bhabha Atomic Research Centre (BARC),
the Minister said that the increased allocation is being utilised for multidisciplinary technology
development aimed at achieving self-reliance. The focus areas include development of new research
reactors, isotope production facilities especially for cancer treatment, advanced reactor technologies
including Small Modular Reactors (SMRs) and hydrogen production, accelerator technologies, laser-based
applications, and advanced materials and manufacturing technologies.
The Minister further informed that, at present, there is no proposal to integrate the PM Gati Shakti
framework with the construction and logistics of upcoming nuclear parks in coastal States.*****
NKR/AK
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