Zero customs duty to transform nuclear energy economics: Singh

The exemption of customs duty on imported 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, Union Minister Jitendra Singh said on Wednesday.

In a written reply to the Lok Sabha, the minister said that this would accelerate the pace of nuclear energy development in the country.

“Zero customs duty on the import of goods required for nuclear power projects... (would bring) 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,” Singh said.

The minister also highlighted that Nuclear Power Corporation of India Limited (NPCIL) had taken several steps to strengthen the domestic supply chain for the 10 newly approved 700 MW pressurised heavy water reactor (PHWR) units.

“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,” Jitendra Singh said.