Gujarat’s new industrial policy extends incentives to SMR and nuclear equipment makers
The Government of Gujarat has included “Nuclear Power Equipment (including Small Modular Reactors)” among the thrust sectors under the Viksit Gujarat Industrial Policy 2026, extending state industrial incentives to nuclear power equipment manufacturing for the first time.
The policy came into effect on June 1, 2026, and will remain in force for five years. With the inclusion, manufacturers of nuclear power equipment become eligible for incentives available to thrust sectors under the policy. The provision is expected to support the development of a domestic supply chain for nuclear power projects and Small Modular Reactors (SMRs), including the manufacturing of components and equipment within the state.
Support for localisation
The inclusion of nuclear power equipment in the thrust sector list establishes a policy framework aimed at attracting investment into nuclear equipment manufacturing and localisation of the nuclear supply chain.
The move comes as India explores the deployment of SMRs and seeks to strengthen domestic manufacturing capabilities for strategic energy technologies. Gujarat already hosts a significant industrial base and several power equipment manufacturing facilities, which could support the development of a nuclear equipment manufacturing ecosystem.
Broader energy measures
The nuclear provision is part of the wider Viksit Gujarat Industrial Policy 2026, which introduces several measures across the energy and power sector.
Among the new provisions are Green Industrial Parks and Estates, which must maintain at least 70% green power consumption and provide Zero Liquid Discharge (ZLD) facilities. The policy also introduces a structured power tariff subsidy framework offering support of Rs 1-2 per unit depending on project location, along with a two-tier incentive structure for research and development (R&D) centres.
The policy proposes the creation of a State-level Steering Committee for Advancing Local Value-Add and Exports (SCALE) to promote localisation and import substitution in sectors including power equipment and semiconductors.
Renewable energy focus
The policy also reiterates several existing energy-sector initiatives and targets, including Gujarat’s goal of achieving 100 GW of renewable energy capacity by 2030, development of the Khavda Renewable Energy Park, green hydrogen land allocations, and Distribution Company (DISCOM) A+ ratings.
The inclusion of nuclear power equipment and SMRs among the policy’s thrust sectors is one of the most significant additions for the power and energy sector, as it formally brings nuclear equipment manufacturing within the scope of state industrial incentives.
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