Nuclear Power Boost! Govt Duty Waiver Triggers Mega Rally as MTAR Tech Surges Up To 13%

Nuclear Power Boost! Govt Duty Waiver Triggers Mega Rally as MTAR Tech Surges Up To 13%​

The Indian stock market is experiencing a significant uplift in nuclear sector stocks following a crucial announcement by the Finance Ministry. The waiver of customs duties on goods imported for nuclear power generation has provided a massive boost to specialized engineering firms like MTAR Tech, Walchandnagar Industries, and Power Mech Projects. Shares saw substantial gains as companies stand to benefit from guaranteed supply chain stability and decreased project costs across India's burgeoning nuclear landscape.

Government Policy Drives Sector Bull Run​

The Finance Ministry announced the waiver of customs duties on all goods imported for nuclear power generation. This decision effectively shields importers from any tax demands pertaining to these shipments during a specific period. The government's order applies retrospectively, covering imports made between April 1, 2019, and January 31, 2026.

This policy move comes as a major incentive for the industry, following an earlier commitment from Union Minister Jitendra Singh. This minister had previously stated that goods required for nuclear power projects would be duty free, aiming to drive down project costs and reduce the per-unit cost of electricity generated by these crucial facilities.

Market Reactions and Stock Performance Surge​

The markets responded vigorously to the regulatory clarity provided by the government. MTAR Tech shares were reported trading 13% higher, reaching Rs 7,120 apiece by 12:05 pm on June 12. Walchandnagar Industries also saw a strong rally, with its stock rising 6%. Power Mech Projects shared in the enthusiasm, climbing 6% as well.

The simultaneous rise across these key players highlights the deep connection between domestic manufacturing prowess and India’s accelerated nuclear energy goals. The move signals strong confidence from institutional investors regarding the long-term viability and growth trajectory of the sector.

MTAR Tech Leads Rally Amid Nuclear Mandate​

MTAR Technologies is identified as a core manufacturer supporting the country's civilian nuclear power program. These companies provide highly critical, precision engineered assemblies directly to the "nuclear island" within reactors. The company’s commitment to this vital infrastructure projects stability and massive revenue potential.

The civilian nuclear power segment accounted for a substantial 26.3% of MTAR’s Rs 2,581.9 crore closing order book for FY26. Furthermore, MTAR contributed 70% of the components to India's successful prototype fast breeder nuclear reactor, translating into a potential revenue stream close to ₹1,500 crore per reactor.

Strategic Contracts Drive Growth at Specialized Firms​

The policy boost is underpinned by ambitious national targets and strategic project deployments. India's stated goal to expand its nuclear capacity up to 100 GW by 2047 provides significant long term order visibility for MTAR’s advanced engineering hubs. The opening of the sector to private industry projects further strengthens this outlook.

Walchandnagar Industries, a leading heavy engineering company, manufactures critical Class I equipment and components essential for nuclear power reactors. Similarly, Power Mech Projects gained market traction after securing a major contract worth Rs 563.23 crore from Bharat Heavy Electricals Limited (BHEL), marking their entry into India's crucial nuclear energy infrastructure sector.