Union Cabinet Approves ₹1,500 Crore Scheme to Boost Critical Mineral Recycling

In a significant policy step, the Union Cabinet led by Prime Minister Narendra Modi has signed off on a ₹1,500 crore incentive scheme aimed at strengthening India’s recycling ecosystem for critical minerals. The initiative, rolled out under the National Critical Mineral Mission (NCMM), is positioned as a near-term measure to secure supplies while new mines and overseas acquisitions remain longer-term prospects.

Scheme Design And Coverage

The scheme will be in force for 6 years from FY 2025-26 to FY 2030-31. It will focus on the recycling of e-waste, lithium-ion battery scrap, and catalytic converters from end-of-life vehicles. Both large established players and smaller entities, including start-ups, are eligible to participate, with one-third of the total outlay earmarked for smaller firms. 

Support will be extended not just to greenfield units but also to expansion and modernisation projects, specifically for recyclers extracting critical minerals rather than only producing black mass.

Incentives and Subsidy Structure

The plan provides a 20% capex subsidy on plant, machinery and utilities for units commencing production within stipulated timelines, with delays attracting reduced support. An opex subsidy is also built in, linked to incremental sales over the FY 2025-26 base year. 

Eligible firms can claim 40% of opex in the second year and 60% by the fifth year, provided sales thresholds are met. Subsidy ceilings are fixed at ₹50 crore per large entity and ₹25 crore per small entity, while annual opex support is capped at ₹10 crore for larger firms and ₹5 crore for smaller ones.

Capacity, Investment and Job Creation

The government anticipates that this programme will deliver at least 270 kilo tonnes of annual recycling capacity and yield about 40 kilo tonnes of critical minerals every year. In addition, it is projected to attract around ₹8,000 crore of investment and create nearly 70,000 direct and indirect jobs. 

These outcomes are expected to enhance domestic capacity, improve supply chain resilience and support India’s transition towards sustainable industrial growth.

Read More: IT Minister Centre Identifies 25 Priority Products for Indigenous Semiconductor IPs, says IT Minister!

Conclusion

By combining fiscal incentives with clear production-linked goals, the Cabinet’s recycling push under NCMM aims to plug near-term supply gaps in critical minerals. The scheme not only supports India’s broader self-reliance agenda but also promises significant gains in employment, investment and sustainability.

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