Budget push for nuclear energy to cut traditional power dependence: Govt

The focus on nuclear energy in the Budget will strengthen the country's power infrastructure and reduce dependence on conventional sources, Union Minister Manohar Lal said on Saturday.

In her budget speech, Union Finance Minister Nirmala Sitharaman made a slew of announcements on segments like taxes, infrastructure and nuclear energy, among others.

The vision to develop at least 100 GW of nuclear power by 2047 underscores India's ambitious yet essential transition towards clean energy, the power minister said.

The focus on nuclear energy will strengthen the country's power infrastructure and reduce dependence on conventional sources, he said.

Welcoming the launch of the Nuclear Energy Mission, the minister said the Rs 20,000 crore allocation for research and development in Small Modular Reactors (SMRs) marks a significant step forward. 

Operationalising at least five indigenously developed SMRs by 2033 will strengthen the country's energy security and solidify its leadership in advanced nuclear technology, he said.

The minister further said the Budget 2025-26 represents a significant milestone for the power sector, ushering in transformative reforms that will drive India's growth and pave the way for a secure, sustainable, resilient, and affordable energy future.

The government's dedication to improving the financial and operational stability of electricity distribution companies, coupled with incentives for enhancing intra-state transmission capacity, will greatly boost the efficiency of the power sector, he said.

On the announcement of full exemption of scrap of lithium-ion battery, lead, zinc and 12 more critical minerals from basic custom duty, the minister said, this will help secure their availability for manufacturing of batteries in India and promote more jobs for youth.

The budget also proposed to add 35 additional capital goods to the exempted list for EV battery manufacturing for electric vehicles.