Tax Breaks and Green Incentives for Nuclear Power
The Department of Atomic Energy (DAE) is advocating for the extension of tax breaks and green incentives to nuclear power, akin to those available for renewable energies like solar, wind, and hydro. This proposal aims to place nuclear power on an equal footing with other renewable energy sources.
Proposed Incentives and Current Disparities
- The DAE has proposed waiving the Goods and Services Tax (GST) for ongoing and upcoming nuclear projects.
- The department seeks access to green financing and renewable purchase obligations (RPOs) for nuclear projects.
- Inclusion in the national green taxonomy and removal from the Central Pollution Control Board’s ‘Red’ category are also requested.
Currently, nuclear power does not enjoy the same incentives as wind, solar, and hydro, which benefit from cheaper finance options due to their renewable classification. Despite nuclear power's low operational carbon emissions, it faces higher environmental risk classification and a higher GST rate of 18%, whereas renewables average around 8.9%.
Legislative and Regulatory Context
- The Shanti Bill, 2025, facilitating private investment in nuclear energy, has recently been enacted.
- Previously, nuclear projects enjoyed excise duty exemptions under the pre-GST regime, which are no longer available.
- Customs duty exemptions have been extended until September 30, 2027, but conditions apply.
Current and Future Capacity Goals
- India's nuclear energy capacity currently stands at 8.78 gigawatts.
- The goal is to achieve 100 gigawatts by the year 2047.
