The government has announced a significant retrospective customs duty waiver for nuclear power equipment imports, covering the period from April 1, 2019 to January 31, 2026. According to a notification issued by the Ministry of Finance dated June 11, the waiver applies to all goods used for nuclear power generation, including non-irradiated fuel elements and cartridges used in nuclear reactors. The government noted that a practice of non-levy of customs on these goods was 'generally prevalent' during this period and has now formalised that no duty shall be required to be paid retrospectively. This notification follows an earlier October 2025 notification that had allowed duty-free import of all goods for nuclear power generation prospectively. The exemption covers specified goods imported for nuclear power generation under designated customs tariff categories, as reported by Business Standard.
The notification has triggered a significant rally in nuclear power sector stocks, with MTAR Technologies leading gains with a surge of almost 10%, marking a sharp rebound for a stock that had witnessed a steep fall earlier this week on the Crusoe data centre pause. Hindustan Construction Company gained 5.03% to ₹22.77, while Walchandnagar Industries rose 4.30% to ₹253.45. Larsen & Toubro advanced 3.45% to ₹3,995.30, and Bharat Heavy Electricals added 1.92% to ₹377.75. This rally comes on the back of the Ministry of Finance notification that directed no customs duty shall be required to be paid on goods for nuclear energy generation imported between April 1, 2019 and January 31, 2026. The move grants retrospective tax relief to eligible imports used in the country's nuclear power sector and is expected to lower project costs for operators and equipment suppliers.
In the annual budget released in February, the Indian government had extended this exemption for nuclear power equipment from customs duty until 2035. The latest notification dated June 11 now applies this exemption retrospectively, effectively regularising past imports and removing any retrospective tax liability on entities that imported nuclear fuel components during the nearly seven-year window. The move represents a comprehensive approach to supporting India's nuclear power generation capabilities, with the government building on its earlier commitment to make such imports duty-free through both prospective and retrospective measures. The retrospective waiver is expected to provide substantial cost savings for nuclear power projects and equipment suppliers operating in India's nuclear sector.
