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2 Feb 2026·Source: The Indian Express
4 min
EconomyScience & TechnologyNEWS

Nuclear Sector Boosted: Zero Customs Duty Under SHANTI Act

Government empowers nuclear sector by waiving customs duty under SHANTI Act.

Nuclear Sector Boosted: Zero Customs Duty Under SHANTI Act

Photo by Sergio Pérez Mateo

The government is strengthening the nuclear power sector by waiving customs duties on imports. This initiative builds upon the SHANTI Act, aiming to boost domestic nuclear energy production. By eliminating customs duties, the government seeks to reduce the cost of importing essential components and technologies for nuclear power plants. This move is expected to encourage greater investment in the nuclear sector and accelerate the development of nuclear energy projects. The SHANTI Act provides the framework for promoting peaceful uses of nuclear energy, and this customs duty waiver aligns with that objective.

Key Facts

1.

Zero customs duty: For nuclear sector imports

2.

Based on: SHANTI Act

UPSC Exam Angles

1.

GS Paper III: Economy - Government policies and interventions for development in various sectors.

2.

GS Paper III: Science and Technology - Developments and their applications and effects in everyday life.

3.

Connects to India's energy security and climate change commitments.

4.

Potential question types: Statement-based MCQs, analytical questions on energy policy.

Visual Insights

Impact of Zero Customs Duty on Nuclear Sector

Key statistics related to the government's initiative to boost the nuclear sector by waiving customs duties under the SHANTI Act.

Customs Duty
0%

Elimination of customs duty on imports for nuclear power plants will reduce costs and encourage investment.

More Information

Background

The use of nuclear energy for peaceful purposes has been a long-standing goal. The development of nuclear technology began in the mid-20th century, initially focused on military applications during World War II. After the war, efforts shifted towards harnessing nuclear energy for electricity generation and other civilian uses. This led to the establishment of international frameworks like the International Atomic Energy Agency (IAEA) to promote the safe and peaceful use of nuclear technology. India's nuclear program started in the 1950s with the vision of Homi J. Bhabha. Early efforts focused on research and development, leading to the construction of India's first nuclear reactor, Apsara, in 1956. Subsequent developments included the establishment of nuclear power plants, such as the Tarapur Atomic Power Station, which began operations in 1969. These initiatives aimed to achieve energy independence and contribute to India's economic growth. The Nuclear Suppliers Group (NSG) has played a crucial role in regulating the international trade of nuclear materials and technology. The legal framework for nuclear energy in India is primarily governed by the Atomic Energy Act of 1962. This act provides the regulatory framework for all activities related to atomic energy, including research, development, and the operation of nuclear facilities. The act also establishes the Atomic Energy Regulatory Board (AERB) to ensure the safety and security of nuclear installations. Amendments to the act have been made over time to address evolving needs and international standards. The SHANTI Act, as mentioned in the news, builds upon this existing framework to further promote peaceful uses of nuclear energy.

Latest Developments

In recent years, India has been actively expanding its nuclear power capacity to meet its growing energy demands and reduce its reliance on fossil fuels. The government has been promoting the development of indigenous nuclear technology and has also been collaborating with other countries to build new nuclear power plants. The Kudankulam Nuclear Power Plant, built in collaboration with Russia, is a prime example of this international cooperation. There have been ongoing debates about the safety and environmental impact of nuclear energy. Concerns about nuclear accidents, such as the Fukushima disaster, have led to increased scrutiny of safety protocols and regulations. However, proponents of nuclear energy argue that it is a clean and reliable source of electricity that can help mitigate climate change. The role of the Atomic Energy Regulatory Board (AERB) is crucial in ensuring the safety and security of nuclear installations. The future of nuclear energy in India looks promising, with the government setting ambitious targets for increasing nuclear power capacity. The development of advanced nuclear technologies, such as thorium-based reactors, is also being explored. These technologies have the potential to provide a sustainable and long-term source of energy. The recent customs duty waiver under the SHANTI Act is expected to further boost investment and development in the nuclear sector.

Frequently Asked Questions

1. What is the SHANTI Act and why is it important in the context of the recent customs duty waiver for the nuclear sector?

The SHANTI Act provides the framework for promoting peaceful uses of nuclear energy. The customs duty waiver aligns with the Act's objective by reducing the cost of importing essential components and technologies, encouraging investment and development in the nuclear sector.

2. What are the key facts about the customs duty waiver for the nuclear sector that are important for the UPSC Prelims exam?

The key fact is that the government has waived customs duties on imports for the nuclear sector. This is based on the SHANTI Act, which promotes the peaceful use of nuclear energy. Remember that this aims to boost domestic nuclear energy production.

Exam Tip

Focus on the purpose of the waiver (boosting domestic production) and the Act it's based on (SHANTI Act).

3. How might the elimination of customs duties impact the cost of nuclear energy projects in India?

By eliminating customs duties, the government seeks to reduce the cost of importing essential components and technologies for nuclear power plants. This is expected to encourage greater investment in the nuclear sector and accelerate the development of nuclear energy projects.

4. What are the potential benefits and drawbacks of waiving customs duties for the nuclear sector?

Pros: Reduced costs for nuclear projects, increased investment in the sector, faster development of nuclear energy projects. Cons: Potential dependence on foreign technology, concerns about the impact on domestic industries if they cannot compete.

5. Why is the nuclear sector being boosted now? What are the recent developments leading to this?

India has been actively expanding its nuclear power capacity to meet its growing energy demands and reduce its reliance on fossil fuels. The government has been promoting the development of indigenous nuclear technology and has also been collaborating with other countries to build new nuclear power plants.

6. How does this customs duty waiver align with India's broader energy policy goals?

The waiver supports India's goals of increasing energy production, diversifying its energy mix, and reducing reliance on fossil fuels. Nuclear energy is a key component of achieving these goals.

7. What could be a potential interview question regarding the SHANTI Act and the nuclear sector boost?

A potential interview question could be: 'What are your views on India's nuclear energy program, considering the SHANTI Act and recent government initiatives to boost the sector? What are the ethical considerations?'

8. What is the historical background of using nuclear energy for peaceful purposes, as it relates to the current developments?

The development of nuclear technology began in the mid-20th century, initially focused on military applications during World War II. After the war, efforts shifted towards harnessing nuclear energy for electricity generation and other civilian uses. This led to the establishment of international frameworks.

9. What government initiatives, besides the customs duty waiver, are in place to promote the nuclear sector?

Based on available information, the government has been promoting the development of indigenous nuclear technology and collaborating with other countries to build new nuclear power plants, such as the Kudankulam Nuclear Power Plant.

10. How can I best prepare for questions about the SHANTI Act in the UPSC Mains exam?

Understand the purpose and provisions of the SHANTI Act, and how it relates to India's energy security and international obligations. Be prepared to discuss its impact on the nuclear sector and India's energy goals.

Practice Questions (MCQs)

1. Consider the following statements regarding the SHANTI Act: 1. It primarily focuses on promoting the peaceful uses of nuclear energy. 2. It mandates zero customs duty on imports related to the nuclear sector. 3. It aims to discourage foreign investment in the domestic nuclear energy sector. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The SHANTI Act provides the framework for promoting peaceful uses of nuclear energy. Statement 2 is CORRECT: The government is waiving customs duties on imports related to the nuclear sector under the SHANTI Act. Statement 3 is INCORRECT: The SHANTI Act aims to encourage greater investment in the nuclear sector, not discourage it. The zero customs duty is intended to reduce costs and attract investment.

2. Which of the following is the primary objective of waiving customs duties on imports for the nuclear sector under the SHANTI Act?

  • A.To increase the cost of nuclear energy production
  • B.To reduce the cost of importing essential components and technologies
  • C.To promote the export of nuclear technology
  • D.To discourage investment in the nuclear sector
Show Answer

Answer: B

The primary objective of waiving customs duties is to reduce the cost of importing essential components and technologies for nuclear power plants. This is expected to encourage greater investment in the nuclear sector and accelerate the development of nuclear energy projects. Options A, C, and D are incorrect as they contradict the stated objective.

3. The Atomic Energy Act of 1962 primarily deals with:

  • A.Regulation of coal mining activities in India
  • B.Providing a regulatory framework for all activities related to atomic energy
  • C.Promoting renewable energy sources like solar and wind power
  • D.Establishing guidelines for environmental protection
Show Answer

Answer: B

The Atomic Energy Act of 1962 provides the regulatory framework for all activities related to atomic energy, including research, development, and the operation of nuclear facilities. It also establishes the Atomic Energy Regulatory Board (AERB) to ensure the safety and security of nuclear installations. The other options are incorrect as they relate to different areas of regulation.

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