Zero Customs Duty to Transform Nuclear Energy Economics, Dr Jitendra Singh Tells Lok Sabha in Written Reply

1. At a Glance

• Fiscal lever in Union Budget 2025-26 exempting customs duty on goods imported for nuclear power projects to lower per-unit electricity cost and accelerate capacity addition [S1][S2].
• Operationalises India's Nuclear Energy Mission target of 100 GW nuclear capacity by 2047 alongside the SHANTI Bill, 2025 opening the sector to private players [S2][S3].
• Tests aspirant grasp of Budget provisions, Department of Atomic Energy (DAE), civil nuclear law reform, and India's net-zero-2070 strategy.

2. Why in the News

• 18 March 2026: MoS (IC) Dr Jitendra Singh told Lok Sabha in a written reply (unstarred question by Shri Ramesh Awasthi & Shri Ravi Kishan) that zero customs duty will transform nuclear energy economics by lowering project cost and tariff, especially for import-heavy foreign-cooperation projects [S1].
• Reply clarified the customs duty exemption on nuclear fuels and reactor components runs up to 2035 [S1].

3. Background & Evolution

• 1948: Atomic Energy Act enacted; 1954: Department of Atomic Energy (DAE) created under PM [S3].
• 2010: Civil Liability for Nuclear Damage Act (CLNDA) — supplier-liability clause hindered foreign vendor entry [general].
• Feb 2025: Union Budget 2025-26 announced the Nuclear Energy Mission with ₹20,000 crore SMR R&D outlay; FM proposed amendments to the Atomic Energy Act and CLNDA [S2].
• 2025: SHANTI Bill, 2025 (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) tabled to consolidate nuclear law and permit private participation under regulatory oversight [S3].
• Mar 2026: Government confirms zero customs duty regime through 2035 [S1].

4. Core Static Facts

• Ministry/Department: Department of Atomic Energy (DAE) — directly under the Prime Minister (not MoEFCC, not Ministry of Power) [S1].
• Minister in charge: MoS (IC) Science & Technology, Earth Sciences; MoS PMO, Personnel, Atomic Energy & Space — Dr Jitendra Singh [S1].
• Target: 100 GW nuclear by 2047 (currently ~8 GW operational) [S2].
• SMR allocation: ₹20,000 crore for design/development/deployment [S2].
• SMR deployment goal: At least 5 indigenously designed SMRs operational by 2033 [S2].
• Indigenous designs by BARC: BSMR-200 (200 MWe), SMR-55 (55 MWe), and a High-Temperature Gas-Cooled Reactor up to 5 MWth [S2].
• Enabling legislation under reform: Atomic Energy Act, 1962; CLNDA, 2010; new SHANTI Bill, 2025 [S3].
• Customs exemption sunset: 2035 [S1].
• Net-zero target supported: 2070 [S2].

5. Multi-Dimensional Analysis

Economic - Reduces capex on imported reactor components/heavy forgings → lowers levelised cost of electricity (LCOE) for nuclear, improving viability vs coal and renewables [S1]. - Particularly beneficial for projects with foreign-vendor content (e.g., Kudankulam VVERs, prospective Jaitapur EPRs) [S1].

Scientific / Technological - Duty-free import accelerates technology absorption for SMRs and HTGRs; complements BARC's indigenous BSMR-200 programme [S2]. - ₹20,000 crore SMR corpus is the largest-ever R&D allocation in DAE history [S2].

Legal / Constitutional - Atomic Energy is Union List Entry 6; reforms (SHANTI Bill) consolidate Atomic Energy Act + CLNDA framework, enabling private participation under AERB oversight [S3]. - Customs exemption uses powers under Section 25, Customs Act, 1962.

Environmental / Climate - Nuclear positioned as low-carbon baseload complementing 500 GW non-fossil capacity by 2030 (Panchamrit) and net-zero 2070 [S2].

Geopolitical / Strategic - Eases ground for vendors from Russia (Rosatom), France (EDF), US (Westinghouse/GE-Hitachi); aligns with India-US 123 Agreement and IAEA safeguards regime. - Reduces import-cost penalty for NSG-restricted technology flows.

6. Recent Developments (last 12-18 months)

• Feb 2025: Budget 2025-26 unveils Nuclear Energy Mission, ₹20,000 cr SMR fund, amendments to AEA/CLNDA announced [S2].
• 2025: SHANTI Bill, 2025 introduced — permits limited private participation [S3].
• 18 March 2026: Lok Sabha written reply confirms zero customs duty till 2035 on nuclear imports [S1].

7. Prelims Hooks

• Zero customs duty on nuclear imports announced in Union Budget 2025-26 [S2].
• Customs exemption valid up to 2035 [S1].
• Nuclear capacity target: 100 GW by 2047 [S2].
• SMR R&D outlay: ₹20,000 crore [S2].
• At least 5 indigenous SMRs operational by 2033 [S2].
• BSMR-200 = 200 MWe; SMR-55 = 55 MWe; HTGR up to 5 MWth — all by BARC [S2].
• SHANTI = Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Bill, 2025 [S3].
• DAE reports directly to the Prime Minister, not the Ministry of Power [S1].
• Reply given to MPs Ramesh Awasthi and Ravi Kishan on 18 March 2026 [S1].
• Net-zero year for India: 2070 [S2].
• Atomic Energy = Union List Entry 6 of Seventh Schedule.
• Governing statutes: Atomic Energy Act 1962; CLNDA 2010 [S3].

8. Mains Relevance

• GS-III: Indian Economy — Infrastructure (Energy); Science & Technology — Indigenisation; Environment — Climate Change.
• GS-II: Government policies & interventions; statutory bodies (AERB).
• Possible question stems: 1. "Examine how fiscal incentives like zero customs duty and SMR funding can reshape India's nuclear energy economics in the path to net-zero 2070." 2. "Discuss the legal and regulatory reforms (SHANTI Bill, CLNDA amendments) needed to unlock private participation in India's nuclear sector." 3. "Small Modular Reactors are a game-changer for India's energy security. Critically analyse."

9. Related Topics to Study Next

• Nuclear Energy Mission / Budget 2025-26 — fiscal architecture for the duty exemption.
• SHANTI Bill, 2025 — companion legal reform enabling private play.
• CLNDA, 2010 — supplier liability bottleneck being addressed.
• Bharat Small Modular Reactor (BSMR-200) — indigenous tech track.
• India's Three-Stage Nuclear Programme (Bhabha plan) — PHWR → FBR → Thorium.
• AERB & IAEA Additional Protocol — safety/safeguards layer.
• Panchamrit & Net-Zero 2070 — climate context.
• NSG, 123 Agreement, NPT context — geopolitics of imports.

10. Common Errors / Trap Areas

• DAE is under the PMO, not Ministry of Power or Ministry of New & Renewable Energy.
• Exemption is time-bound till 2035, not permanent [S1].
• Nuclear Energy Mission ≠ National Mission on Strategic Knowledge for Climate Change; it is a Budget 2025-26 initiative under DAE.
• SHANTI Bill replaces/consolidates — it does not repeal CLNDA outright; liability safeguards retained.
• SMR target year is 2033 for first 5 reactors, while 100 GW is the 2047 goal — don't conflate.

11. Sources

• [S1] Zero Customs Duty to Transform Nuclear Energy Economics, Dr Jitendra Singh Tells Lok Sabha — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2241715 — (tier: 1)
• [S2] Nuclear Power in Union Budget 2025-26 (DAE) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099244 — (tier: 1)
• [S3] SHANTI Bill, 2025 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2206598 — (tier: 1)