Push for clean energy, critical minerals
Sitharaman said the central government plans to amend the Atomic Energy and Civil Liability For Nuclear Damage acts to realise the country’s 100GW atomic energy goal by 2047
Nuclear energy is expected to form a significant part of the energy mix for Viksit Bharat (developed India), Union finance minister Nirmala Sitharaman said in her budget speech on Saturday, as she announced a ₹20,000 crore allocation for a programme for the research and development (R&D) of small modular reactors.
She also said the central government plans to amend the Atomic Energy and Civil Liability For Nuclear Damage acts to realise the country’s 100GW atomic energy goal by 2047.
While announcing the Nuclear Energy Mission, Sitharaman said the government will partner with the private sector to set up Bharat Small Reactors, for the R&D of Bharat Small Modular Reactors and for the R&D of newer technologies for nuclear energy.
The finance minister also proposed to completely exempt customs duties on cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to promote domestic manufacturing to boost battery production, additional capital goods for EVs and mobile battery manufacturing. This is in addition to the 25 critical minerals fully exempted of Basic Customs Duty (BCD) in the July 2024 Union Budget.
“Minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics,” she said.
The customs exemption will “provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors,” she said. The list of 25 critical minerals include Beryl, Cobalt, Cadmium, Lithium, Graphite, Nickel, and Selenium. Lithium, for instance, are used in EV batteries.
To boost renewable energy, she proposed to expand the list of exempted capital goods used to make solar cells and panels.
“Energy transition is critical in the fight against climate change. To support energy transition, I propose to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. Further, in view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, I propose not to extend the exemption of customs duties provided to them,” she said.
HT reported on Saturday that India will prioritise climate adaptation efforts to safeguard its rapid economic expansion, even as decreasing global financial commitments for climate action may force developing nations to rework their targets, according to the Economic Survey tabled in Parliament on Friday. The survey highlighted that India’s adaptation expenditure rose to 5.6% of GDP in FY22 from 3.7% in FY16, underscoring the growing focus on building resilience against climate impacts as the country pursues its goal of becoming a developed nation by 2047.
Experts welcomed the clean energy push but underscored that renewable sources need to be scaled.
“The government’s commitment to clean energy is a welcome step. However, nuclear power comes with significant safety, waste management, and security risks. Instead of prioritising risky and expensive nuclear expansion, India should focus on rapidly scaling up safe, proven renewable energy sources like wind and solar — offering a more sustainable, cost-effective, and decentralised path to energy security,” said Harjeet Singh, climate activist and founding director, Satat Sampada Climate Foundation.
“Beyond brief mentions of boosting EV battery manufacturing, and climate resilience in agriculture, the Budget falls short of delivering the bold and comprehensive climate action India urgently needs. It lacks a renewed commitment to scaling up renewable energy, tackling deadly air pollution, restoring ecosystems, and safeguarding communities on the frontlines of the climate crisis. With worsening environmental degradation and escalating climate threats, we need decisive, transformative action—not fragmented gestures,” he added.
Karthik Ganesan, fellow and director — strategic partnerships, Council on Energy, Environment and Water (CEEW), said the budget “provides a shot in the arm for a sector that has not received consistent funding, despite being one of the older nuclear programmes in the world.”
“The R&D efforts needed for an indigenous modular reactor are significant and the 2033 timeline for five reactors would put it as one of the fastest to market. International collaboration to accelerate the development and learn from what other countries have done would also be a welcome step,” said Ganesan.
Sitharaman also said the Centre s cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals.
“The National Manufacturing Mission announced in the Budget has a timely focus on future-ready workforce and competitive MSME sector. India’s long-term low-carbon development goals can create new employment & market opportunities in renewable energy, electric vehicles, circular economy, if we can reskill workers and support MSMEs. In addition, the National Critical Mineral Mission, announced in the last budget and recently approved, aims to secure the value chain for critical minerals that are essential to India’s low-carbon growth. Battery waste recycling and critical mineral recovery can create decent new jobs in regions that are not blessed with high renewable energy potential or a diverse industrial base,” Ulka Kelkar, Director-Climate, World Resources Institute India said.
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