Customs duty waiver boosts nuclear-linked stocks in 2026

What triggered the move in nuclear-linked stocks

Shares of MTAR Tech, Walchandnagar Industries, and Power Mech Projects gained sharply on June 12 after a Ministry of Finance notification waived customs duties on all goods imported for nuclear power generation. The waiver covers imports made between April 1, 2019 and January 31, 2026. The notification said the move shields importers from any tax demands on such shipments during the period. Trading action reflected the market’s view that the clarification reduces uncertainty around nuclear project equipment imports and related supply chains. The rally also brought additional attention to listed firms seen as part of nuclear project execution and equipment supply. While the notification is about imports, listed players moved on expectations of smoother project economics and procurement. The stock reaction was most visible in companies already associated by investors with nuclear and engineering orders.

What the finance ministry notification said

The order directed that no customs duty shall be required to be paid on goods for nuclear energy generation imported between April 1, 2019 and January 31, 2026. It clarified that any customs duty, if any, payable on imports of the specified goods during the period would not be required to be paid. In practice, this language removes the need for payment for eligible imports in that window and addresses potential retrospective tax liability. The coverage period matters because it spans multiple years of nuclear project procurement and execution. The notification’s retrospective application was the key change highlighted in market reports. The announcement followed earlier policy signals that nuclear power equipment imports would remain exempt. Investors tracked the notification closely because it regularises past imports rather than only affecting future shipments.

Retrospective application and the earlier 2035 extension

In the annual Union Budget released in February, the government had extended the exemption for nuclear power equipment from customs duty until 2035. Thursday’s order applied the exemption retrospectively for the 2019 to 2026 period. Separately, reports noted that an October 2025 notification had already made such imports duty-free prospectively, and the new step builds on that by regularising past imports. For projects and vendors, the retrospective element can be more significant than a forward extension because it addresses the risk of demands related to earlier import consignments. The notification explicitly described the relief as removing any need to pay duty for the covered period. That combination of retrospective relief and longer-dated policy continuity is what the market appeared to price in on June 12.

Minister’s earlier remarks on costs and tariffs

In March, Union Minister Jitendra Singh had said imports of goods required for nuclear power projects will be duty free. He added that this would bring down project cost and the per-unit cost of electricity generated. The June 12 notification aligns with that earlier public position by removing customs duty payment for the specified period. Investors often look for consistency between statements and formal notifications, especially on taxation matters. In this case, the formal order provides the legal and operational clarity for importers and project stakeholders. The comment about per-unit electricity cost also helped frame the waiver as a cost-side measure rather than a narrow procedural change. Market participants treated the step as supportive for nuclear project economics.

How key stocks moved on June 12

MTAR Tech led the move among the names highlighted. At 12:05 pm on June 12, MTAR Tech shares were trading 13% higher at INR 7,120 apiece. Reports also said the broader pack, including Walchandnagar Industries and Power Mech Projects, rose up to 13% after the notification. Another market update cited Walchandnagar Industries gaining 4.30% and Hindustan Construction Company rising 5.03% amid the sector boost. It also noted MTAR Technologies surging nearly 10% after the import duty relief announcement, reflecting variation across timestamps and market moves through the session. L&T was also mentioned among stocks “buzzing in trade” on the announcement, though no specific percentage move was provided in the supplied information. Overall, the day’s price action suggested investors were repricing perceived order visibility and execution conditions for nuclear-linked work.

Why markets reacted to an import-duty decision

Even though the exemption is aimed at imported goods, the market reaction focused on how the policy could reduce uncertainty for nuclear projects and their procurement cycles. A retrospective waiver can remove the risk of duties being demanded on past imports, which may simplify contract reconciliations and project cost accounting for stakeholders. The notification also reduces the likelihood of disputes on whether duty is payable for eligible imports during the covered period. For suppliers and contractors that operate around nuclear projects, smoother project finances and fewer tax-related complications can support steadier execution. Reports characterised the policy as boosting “order visibility” for nuclear equipment suppliers. However, the notification itself is about duties on imported goods, not a direct award of new contracts, and investors will still track actual order flows and project milestones.

Company-specific context investors were already tracking

MTAR Tech’s move on June 12 came shortly after a sharp fall earlier in the week linked to a separate trigger described as the “Crusoe data centre pause.” A separate item noted MTAR Tech shares fell 9% on June 11 as a key global client faced a setback in the US. Against that backdrop, the duty waiver provided a fresh, sector-wide catalyst that shifted attention back to nuclear-linked themes. MTAR has also featured in recent news on order wins. One report said the stock hit a record high after winning an order worth INR 2,278.96 crore from an international entity. Another update stated MTAR Technologies secured confirmed orders totalling INR 194 crore from Megha Engineering and Infrastructures Ltd for components vital to the civil nuclear power sector, with execution slated by April 2028 and linked to Kaiga 5 and 6 reactors.

Key facts at a glance

Where the policy narrative is heading

The supplied reports also referenced that the SHANTI Act opens nuclear energy to private participation. While details were not provided in the text, the reference indicates that nuclear policy is being positioned as more open over time, alongside measures aimed at reducing project costs. The customs duty waiver fits within that cost and facilitation theme, particularly because it applies retrospectively and addresses earlier imports. For investors, the immediate implication is lower regulatory and tax overhang on eligible imports during the 2019 to 2026 window. The longer-term implication, based on the February budget reference, is that the exemption is also designed to persist until 2035 for relevant equipment. Market participants are likely to monitor follow-through via project execution updates and any additional clarifications around the scope of “specified goods.”

Conclusion

The finance ministry’s retrospective customs duty waiver for nuclear power generation imports between April 2019 and January 2026 sparked a sharp move in nuclear-linked stocks on June 12. MTAR Tech rose as much as 13% intraday to INR 7,120, while other names such as Walchandnagar Industries and Power Mech Projects also gained, with additional strength seen in HCC in some updates. The notification’s key impact is the removal of any requirement to pay customs duty for eligible imports in the covered period, reducing the risk of tax demands on past shipments. With the budget already extending the exemption until 2035, investors will now watch how the policy clarity translates into smoother procurement and execution for nuclear projects. Any further notifications defining eligible goods or implementation mechanics will be the next concrete milestones for the sector.