Cabinet Clears ₹1500 Crore Scheme to Boost Critical Mineral Recycling; Targets 40 KT Output, 70000 Jobs
The scheme, aligned with the National Critical Mineral Mission (NCMM), seeks to bridge the demand-supply gap in the near term by developing capacity to extract minerals from secondary sources such as lithium-ion battery (LIB) scrap, catalytic converters from end-of-life vehicles, and other e-waste streams.
New Delhi, September 4: In a bid to strengthen India’s supply chain resilience for critical minerals, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a ₹1,500 crore Incentive Scheme to promote recycling of e-waste and battery waste for the extraction of vital minerals.
The scheme, aligned with the National Critical Mineral Mission (NCMM), seeks to bridge the demand-supply gap in the near term by developing capacity to extract minerals from secondary sources such as lithium-ion battery (LIB) scrap, catalytic converters from end-of-life vehicles, and other e-waste streams. Officials noted that while primary mining projects require long gestation periods, recycling offers a faster route to ensure resource security.
Scheme Structure
- Tenure: Six years, covering FY 2025-26 to FY 2030-31.
- Eligibility: Large established recyclers as well as small and start-up units. One-third of the outlay is earmarked for small/new players.
- Coverage: Both new units and expansions/modernisation of existing facilities.
- Focus: Incentives apply only to value chain stages involving actual mineral extraction, not just black mass production.
Incentives
- Capex Subsidy: 20% on plant & machinery, equipment, and utilities for units starting production within the specified timeframe.
- Opex Subsidy: Linked to incremental sales beyond FY 2025-26 base year — 40% of eligible Opex in the 2nd year and 60% in the 5th year.
- Ceilings: ₹50 crore overall cap per large entity and ₹25 crore for small entities, with sub-limits of ₹10 crore and ₹5 crore on Opex subsidy respectively.
Expected Outcomes
The scheme is projected to:
- Create 270 kilo tonnes of annual recycling capacity, yielding 40 kilo tonnes of critical minerals.
- Mobilise around ₹8,000 crore investment.
- Generate close to 70,000 direct and indirect jobs across the recycling ecosystem.
Stakeholder Consultations
The Ministry underscored that the scheme was shaped after multiple rounds of dialogue with industry representatives, domain experts, and stakeholders through meetings and seminars.
The initiative is expected to significantly advance India’s goal of building a domestic ecosystem for critical minerals, which are indispensable for clean energy, electric mobility, electronics, and advanced manufacturing.
