India on Thursday granted retrospective customs duty relief on specified nuclear power generation equipment imported between April 1, 2019 and January 31, 2026, shielding importers from any tax demands on such shipments during the period.
In a notification issued Thursday, the Finance Ministry said the relief covers goods used for generation of nuclear power.
The notification clarified that any customs duty, if any, payable on imports of the specified goods during the period would not be required to be paid.
The move effectively regularizes past imports by ensuring that importers will not face retrospective duty claims for eligible nuclear power equipment brought into India from April 2019 through January 2026.
In March this year, Union Minister Dr. Jitendra Singh said that the zero customs duty on the imports of goods required for nuclear power projects will result in reduction of the project cost and the unit cost of electricity generated.
"This will make the projects more viable," he said in a ritten reply in the Lok Sabha.
The minister added the customs duty exemption on imports of goods required for Nuclear Power Projects will make the projects more economically viable and result in reduced tariffs for the consumers. The step will also enable wider private participation in backdrop of SHANTI Act, 2025, the law which provided a room for private investment in nuclear sector.
The categories of equipment expected to be covered under the zero custom duty regime, as informed by Singh, are critical equipment such as Reactor Pressure Vessels (RPVs), Steam Generators (SGs), Pressurizers, Turbines and other related equipment for Light Water Reactors being set up with foreign cooperation.
The customs relief will also reduce timelines involved in custom clearances and result in faster deliveries of equipment to projects.
