PARLIAMENT QUESTION: ZERO CUSTOM DUTY ON IMPORTS FOR NUCLEAR SECTOR

1. At a Glance

Zero Basic Customs Duty (BCD) exemption on imported goods for Nuclear Power Projects (NPPs) announced by Department of Atomic Energy (DAE) to reduce project cost, lower per-unit electricity tariff, and enable wider private participation under the SHANTI Act, 2025 [S1][S3].
Aligned with the Nuclear Energy Mission for Viksit Bharat target of 100 GW nuclear capacity by 2047 and net-zero by 2070 [S2][S3].
Examinable for GS-III (energy security, infrastructure) and GS-II (statutory bodies, government policies).

11 March 2026 — DAE Parliament reply confirming zero customs duty regime on critical NPP equipment such as Reactor Pressure Vessels (RPVs), Steam Generators, Pressurizers, Turbines for Light Water Reactors (LWRs) built via foreign cooperation [S1].
Follows Union Budget 2025-26, which extended the customs exemption to all NPPs irrespective of capacity, valid for contracts registered with Customs Houses up to 30 September 2035 (earlier sunset: 30 September 2027) [S3].
SHANTI Act, 2025 received Presidential assent on 21 December 2025, opening the door for private investment [S2].

Atomic Energy Act, 1962 — sovereign monopoly of Central Government over nuclear energy [S2].
Civil Liability for Nuclear Damage (CLND) Act, 2010 — capped operator liability; deterred foreign suppliers [S2].
Union Budget 2025-26 (1 Feb 2025) — announced "Nuclear Energy Mission for Viksit Bharat"; promised amendment of Atomic Energy Act 1962 and CLND Act 2010 [S3].
SHANTI Bill 2025 — tabled by Dr. Jitendra Singh (MoS S&T); passed by Lok Sabha and Rajya Sabha; assented 21 Dec 2025 — repeals 1962 and 2010 Acts [S2].
March 2026 — customs duty exemption details placed before Parliament [S1].

Topic: Zero BCD on imports for Nuclear Power Projects.
Implementing Ministry: Department of Atomic Energy (DAE), under PMO directly (not MNRE, not Ministry of Power) [S1].
Enabling legislation framework: SHANTI Act, 2025 (full name: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025) [S2].
Customs exemption window: Contracts registered up to 30 September 2035 [S3].
Equipment covered: RPVs, Steam Generators, Pressurizers, Turbines, related LWR equipment with foreign cooperation [S1].
Liability ladder under SHANTI Act: ₹100 crore to ₹3,000 crore graded by facility type [S2].
National target: 100 GW nuclear by 2047; net-zero 2070 [S2].
Regulator: Atomic Energy Regulatory Board (AERB) gets formal statutory recognition; Appellate Tribunal for Electricity is appellate authority; new Atomic Energy Redressal Advisory Council for dispute resolution [S3].

Economic: Lowering BCD reduces capex of capital-intensive LWRs (~60% of project cost is equipment); cuts levelised tariff and improves PPA viability; attracts FDI [S1][S3].
Legal/Constitutional: Atomic energy is Union List, Entry 6 (Schedule VII); SHANTI Act repeals 1962 & 2010 Acts and creates unified framework while retaining sovereign control over fuel cycle, waste, security [S2].
Strategic: Enables imports under 123 Agreement with US, and cooperation with France, Russia (Rosatom), Japan; reduces friction caused by CLND's supplier-liability clause [S2].
Environmental: Supports decarbonisation path to net-zero 2070; nuclear as baseload to complement RE [S2].
Administrative: DAE retains exclusive authority over fuel cycle, waste management, security; private sector limited to setting up facilities under licence + AERB safety authorisation [S2].

1 Feb 2025 — Budget 2025-26 launches Nuclear Energy Mission; ₹20,000 crore R&D outlay for SMRs (5 indigenous Bharat Small Reactors operational by 2033) [S3].
Dec 2025 — SHANTI Bill passed by both Houses; Presidential assent 21 Dec 2025 [S2].
11 Mar 2026 — Parliament Q&A confirms zero customs duty for NPP imports [S1].
2026 — US industry delegation meets Dr. Jitendra Singh to discuss private investment in nuclear sector [S2].

SHANTI = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India [S2].
SHANTI Act repeals Atomic Energy Act 1962 and CLND Act 2010 [S2].
Presidential assent to SHANTI Act: 21 December 2025 [S2].
Bill tabled by Dr. Jitendra Singh, MoS (Independent Charge), S&T and DAE [S2].
Customs duty exemption validity extended to 30 September 2035 (from 30 September 2027) [S3].
Customs exemption now covers NPPs of all capacities (earlier capacity-specified) [S3].
Equipment covered: RPV, Steam Generator, Pressurizer, Turbine for Light Water Reactors [S1].
Nuclear liability graded: ₹100 crore – ₹3,000 crore [S2].
National target: 100 GW nuclear capacity by 2047 [S2][S3].
Appellate authority under SHANTI Act: Appellate Tribunal for Electricity (APTEL) [S3].
Atomic energy falls under Union List Entry 6 of Schedule VII.
DAE reports directly to Prime Minister (not a Cabinet ministry).

GS-III — Energy Security; Infrastructure; Indigenisation of Technology; Government Budgeting.
GS-II — Government policies and interventions; Statutory bodies (AERB).
Probable stems: 1. "The SHANTI Act, 2025 combined with zero customs duty regime marks a paradigm shift in India's nuclear sector. Critically evaluate." 2. "Discuss how fiscal incentives and legal reforms can together unlock the 100 GW nuclear target by 2047." 3. "Examine the trade-off between sovereign control and private participation in India's civil nuclear programme."

Wrong ministry: DAE is under PMO, NOT Ministry of Power or MNRE.
SHANTI Act repeals both Atomic Energy Act 1962 and CLND Act 2010 — not just one.
Customs sunset date is 30 September 2035, not 2030 or 2047.
The exemption is Basic Customs Duty, not GST/IGST.
Private participation is limited — government retains exclusive authority over fuel cycle, waste, and security.
Liability cap is graded ₹100–3000 crore, not flat ₹1,500 crore (old CLND figure).

[S1] PARLIAMENT QUESTION: ZERO CUSTOM DUTY ON IMPORTS FOR NUCLEAR SECTOR (PIB, 11 Mar 2026) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2238299 — (tier 1)
[S2] The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025 (PIB) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2206598 — (tier 1)
[S3] Nuclear Power in Union Budget 2025-26, Department of Atomic Energy (PIB) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099244 — (tier 1)