Budget 2026: FM Extends Customs Duty Exemption for Nuclear Power Project Imports Till 2035 [Read Finance Bill 2026]
The Finance Minister extends nil customs duty on key nuclear power project imports till September 2035
The Union Budget for the Financial Year 2026-27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026).
The Finance Minister has proposed extending the exemption from Basic Customs Duty (BCD) on imports required for nuclear power projects till 30 September 2035, providing long-term customs duty relief to support India’s nuclear energy expansion plans.
As per the proposals under the nuclear energy segment of the Budget, all goods used for the generation of nuclear power falling under tariff item 8401 30 00 will attract nil Basic Customs Duty, compared with the existing rate of 7.5%. Similarly, Control and Protector Absorber Rods and Burnable Absorber Rods used in nuclear power generation under tariff item 8401 40 00 will also be fully exempt from BCD, down from 7.5%.
In addition, the Finance Bill proposes a complete exemption from Basic Customs Duty for goods required for the setting up of specified nuclear power projects, irrespective of their generation capacity, provided such projects are registered with the concerned Customs Houses on or before 30 September 2035. The exemption will be available in compliance with the Project Import Regulations, 1986.
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The extension of the customs duty exemption effectively provides a nearly decade-long window for nuclear power developers to import critical equipment and components at lower cost. Nuclear projects typically involve high capital expenditure and long construction timelines, with significant reliance on specialised imports that are not manufactured domestically at scale.
Nuclear power is viewed as an important base-load, low-carbon energy source to complement renewable energy as India works towards its long-term climate and net-zero commitments.
The continued customs duty relief is also expected to support upcoming nuclear projects planned under fleet-mode construction and international collaboration frameworks, as well as the expansion and modernisation of existing facilities.
The proposed changes will take effect from 1 April 2026, subject to the passage of the Finance Bill, and will apply to eligible nuclear power project imports registered up to 30 September 2035.
Customs Duty Changes for Nuclear Power Projects
| S. No. | Commodity | Tariff Item | BCD Rate (Earlier) | BCD Rate (Proposed) |
| 4 | All goods for generation of nuclear power | 8401 30 00 | 7.5% | Nil |
| 5 | Control and Protector Absorber Rods and Burnable Absorber Rods for generation of nuclear power | 8401 40 00 | 7.5% | Nil |
| 6 | Goods required for setting up of specified nuclear power projects, irrespective of capacity, registered with Customs Houses on or before 30 September 2035, in compliance with Project Import Regulations, 1986 | As applicable | Nil |
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