New Delhi: The government is considering the introduction of a dedicated Production Linked Incentive (PLI) scheme for manufacturing critical nuclear components in the upcoming Union Budget, aimed at strengthening India’s domestic nuclear supply chain and supporting long-term capacity expansion, according to a government official.
People familiar with the discussions said the proposed incentive outlay is being examined in the range of Rs 18,000 to 20,000 crore. However, the final structure, eligibility criteria and rollout timelines are yet to be finalised.
The proposal follows the recent opening up of the nuclear sector to private participation under the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, which also introduces caps on accident-related liabilities for equipment suppliers.
The proposed PLI is expected to target high-value components such as heavy forgings, reactor pressure vessels, specialised steel alloys and other nuclear-grade equipment that currently face long gestation periods due to limited domestic capacity.
Officials said the focus would be on localisation, capacity creation and reducing lead times, which remain key bottlenecks in nuclear project execution.
India has set a target of achieving 100 GW of nuclear power capacity by 2047 as part of its clean energy and energy security strategy, making domestic manufacturing depth critical.
The incentive is also seen as supporting the planned expansion of Small Modular Reactors, which require standardised manufacturing and a reliable vendor ecosystem. Discussions on implementation are ongoing, with details to be firmed up after inter-ministerial consultations.
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