Budget 2026-27: CCUS outlay of Rs 20K cr, duty exemption for nuclear power, battery storage
GST
Dated:- 1-2-2026
PTI
New Delhi, Feb 1 (PTI) The government on Sunday announced Rs 20,000 crore outlay for Carbon Capture Utilisation and Storage technologies, and proposed customs duty exemptions to encourage investment in nuclear power and battery energy storage to boost non-fossil fuel-based energy generation.
Carbon Capture Utilization and Storage (CCUS) technologies aim to reduce carbon emission by either storing or reusing it so that captured carbon dioxide does not enter the atmosphere.
Finance Minister Nirmala Sitharaman, in her budget speech in the Lok Sabha, said, “Aligning with the roadmap launched in December 2025, CCUS
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rgy Storage System.
She also proposed to exempt basic customs duty on the import of sodium antimonate for use in the manufacture of solar glass.
Presently, 7.5 per cent basic customs duty is levied on sodium antimonate.
Boosting nuclear power is also needed in the country to replace coal-based electricity generation, which serves as a base load.
Sitharaman proposed to extend the existing basic customs duty exemption on imports of goods required for Nuclear Power Projects till 2035 and expand it for all nuclear plants irrespective of their capacity.
About the biogas blended CNG (compressed natural gas), she said, “I propose to exclude the entire value of biogas while calculating the Central Excise duty payable on biogas blended CNG.
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ng demand and improving project viability, he stated.
Varchasvi Gagal, MD and CEO of Datta Power Infra, said India's energy transition has moved from aspiration to infrastructure.
This Budget doesn't just fund renewables – it engineers the foundation of a resilient green superpower, Gagal added.
On CCUS outlay, Rajeev Juneja, President, PHDCCI, said these are incentives aimed at scaling deployment in heavy-emitting sectors like power, steel, cement, refineries, and chemicals.
The funds are intended to incentivise CCUS technology adoption and commercial readiness across multiple industrial sectors, he added.
This allocation is part of India's broader climate strategy aligned with its net-zero by 2070, he opined.
Investments in ca
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