Union Budget 2026 gives fresh push to nuclear energy sector after SHANTI Act opens doors to private players
Union Budget proposed to extend the existing basic customs duty exemption on imports of goods required for nuclear power projects till 2035 and expand it for all nuclear plants irrespective of their capacity
After the enactment of SHANTI (Sustainable Harnessing of Advancement of Nuclear Technology for India) legislation, the Union Budget 2026 on Sunday gave a fresh boost to the nuclear energy sector.
The budget proposed to extend the existing basic customs duty exemption on imports of goods required for nuclear power projects till 2035 and expand it for all nuclear plants irrespective of their capacity.
The basic customs duty on all goods for the generation of nuclear power, falling under tariff item 8401 30 00, has been reduced from 7.5% to zero.
The customs duty on Control and Protector Absorber Rods, Burnable Absorber Rods for the generation of nuclear power, falling under tariff item 8401 40 00, has also been brought down to zero from 7.5%.
Tariff item 8401 30 00 refers to fuel elements (cartridges), non-irradiated, for nuclear reactors. These are specialized, fabricated fuel assemblies that have not yet been placed in a nuclear reactor and, therefore, have not been exposed to radiation.
Goods required for specific nuclear power projects registered with the Customs House by September 30, 2035, in compliance with the Project Import Regulations, 1986, will also be subject to applicable duties.
The SHANTI Act removes the roadblocks that have held back private companies from participating in the nuclear power sector.
Union Minister Dr Jitendra Singh said the budget announcement is aligned with the SHANTI Act, which seeks to widen the scope for private sector participation in the nuclear sector. He said enabling investors and operators to access globally competitive equipment and technologies is essential for improving efficiency, accelerating capacity creation, and encouraging credible private participation in nuclear power projects.
Singh highlighted the Budget’s proposal of an outlay of Rs 20,000 crore over five years for Carbon Capture, Utilisation and Storage (CCUS) technologies.
He said the funding would support the scale-up of carbon capture projects and improve technology readiness levels for wider industrial application.
The Minister pointed out that biotechnology-enabled carbon utilisation and conversion pathways are increasingly relevant as India seeks growth models that combine industrial expansion with environmental responsibility.
On digital and infrastructure planning, Singh described the National Geospatial Mission as a foundational reform with cross-sectoral implications. He said the Mission will develop foundational geospatial infrastructure and datasets, and will be implemented using the PM Gati Shakti platform.
