India approves Rs.1,500 crore critical mineral recycling scheme

The Union Cabinet approved a Rs.1,500 crore Incentive Scheme under the National Critical Mineral Mission to build domestic recycling capacity for extraction of critical minerals from secondary sources.

• Main action: The Cabinet approved a Rs.1,500 crore Incentive Scheme (tenure FY 2025-26 to FY 2030-31) to support recycling of e-waste, Lithium Ion Battery (LIB) scrap, and other scrap (e.g., catalytic converters); incentives include 20% Capex subsidy, phased Opex subsidy (40% in year 2, 60% by year 5), and per-entity ceilings of Rs.50 crore (large) and Rs.25 crore (small) with Opex ceilings of Rs.10 crore and Rs.5 crore respectively.
• Background and details: The Scheme targets developing at least 270 kilo ton annual recycling capacity to yield about 40 kilo ton annual critical mineral production, expects to attract around Rs.8,000 crore of investment, earmarks one-third of outlay for small recyclers and start-ups, and applies to new units as well as expansion/modernization of existing units.