Customs Duty
Retrospective vs Prospective Relief
Customs duty in India is levied under the Customs Act, 1962 and the Customs Tariff Act, 1975, administered by the Central Board of Indirect Taxes and Customs (CBIC) under the Finance Ministry. Import duty on capital goods for power projects can significantly inflate project costs.
- Retrospective exemption means the government waives duty demands already raised (or potentially raisable) for past imports — it cannot be used to claim refunds on duty already paid, but shields importers from pending or future demands for that period.
- Prospective exemption (Budget 2026-27, extended to 2035): applies to new imports registered before September 30, 2035 for nuclear power projects.
- Zero customs duty on nuclear power project equipment results in: (a) reduced capital expenditure per MW, (b) lower levelised cost of electricity (LCOE), and (c) improved project viability — critical when nuclear plants require 10–15 year gestation periods.
- Equipment covered: Reactor Pressure Vessels, Steam Generators, Pressurizers, Turbines, and related LWR components (typically imported from Russia, France, South Korea, USA under bilateral civil nuclear agreements).
● Tracked since February 02, 2026 · last seen June 11, 2026 · updates as the daily brief publishes
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