Cabinet Clears Rs 1,500 Cr Incentive Scheme To Boost Critical Mineral Recycling

2025-09-04 02:07:25

(MENAFN- KNN India) New Delhi, Sep 4 (KNN) The Union Cabinet, chaired by Prime Minister Modi, has approved a Rs 1,500-crore incentive scheme to establish recycling capacity for extracting critical minerals from secondary sources.

The initiative forms part of the National Critical Mineral Mission (NCMM), which seeks to strengthen domestic capacity and supply chain resilience in this strategically important sector.

Given the long gestation period of exploration, mining, and foreign asset acquisition, the government has identified recycling as a near-term measure to ensure reliable mineral supplies.

The scheme will run for six years, from FY 2025-26 to FY 2030-31, targeting e-waste, lithium-ion battery scrap, and other sources such as catalytic converters from end-of-life vehicles.

Both large, established recyclers and smaller firms, including start-ups, will be eligible, with one-third of the outlay reserved for new and small-scale players.

The incentives will cover new units as well as expansion, modernization, and diversification of existing facilities.

Support will apply specifically to processes involving the extraction of critical minerals rather than intermediate black mass production.

The scheme provides a 20 percent capital expenditure subsidy on plant, machinery, and related utilities, subject to production timelines.

Operating expenditure subsidies will be offered on incremental sales achieved over the FY 2025-26 baseline, with phased disbursement from FY 2026-27 to FY 2030-31.

Incentive ceilings are set at Rs 50 crore for large entities and Rs 25 crore for small entities, with limits on the operating subsidy at Rs 10 crore and Rs 5 crore, respectively.

According to government estimates, the programme is expected to create 270 kilotonnes of annual recycling capacity, yielding about 40 kilotonnes of critical minerals.

It is projected to attract investments of nearly Rs 8,000 crore and generate around 70,000 direct and indirect jobs.

Officials noted that multiple consultations with industry stakeholders were held during the formulation of the scheme.

(KNN Bureau)

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