Centre Approves Rs 15 Billion Plan for Critical Mineral Recycling
POWER & RENEWABLE ENERGY

Centre Approves Rs 15 Billion Plan for Critical Mineral Recycling

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an incentive scheme worth Rs 15 billion to develop recycling infrastructure for extracting critical minerals from secondary sources. The scheme is a core component of the National Critical Mineral Mission (NCMM) and aims to enhance domestic capabilities while reducing import reliance for key industrial materials.
Recognising the long gestation period of the traditional mining value chain—spanning exploration, auctioning, and operationalisation—the Ministry of Mines has termed this initiative a “prudent way to ensure supply chain sustainability in the near term” through secondary-source recycling.
Set to run for six years, from FY 2025–26 to FY 2030–31, the scheme will support the recycling of eligible feedstock such as e-waste, lithium-ion battery (LIB) scrap, and other non-electronic scrap including catalytic converters from end-of-life vehicles.
The incentive programme is open to both large-scale recyclers and emerging start-ups. Notably, one-third of the total outlay has been reserved for small and new recyclers. The scheme applies to new facility setups as well as capacity expansion, modernisation, and diversification of existing units.
The focus will be strictly on the part of the value chain engaged in the extraction of critical minerals—not those involved merely in producing black mass.

The incentive structure includes:
  • 20 per cent capital expenditure subsidy on plant, machinery, and utilities for timely commissioning.
  • Operating expenditure subsidy on incremental sales over the base year (FY 2025–26), with 40 per cent disbursed in the second year and 60 per cent in the fifth year (FY 2030–31), contingent on meeting specified sales thresholds.

To ensure broader participation, incentives per entity are capped at Rs 500 million for large recyclers and Rs 250 million for small ones, including a ceiling of Rs 100 million and Rs 50 million respectively for operational expenditure support.

The government expects the scheme to enable the development of at least 270 kilotonnes of annual recycling capacity, resulting in the production of around 40 kilotonnes of critical minerals each year. This is projected to attract Rs 80 billion in investment and generate up to 70,000 direct and indirect jobs.

The scheme’s formulation followed extensive consultations with industry players and stakeholders through meetings, seminars, and expert sessions. It marks a significant step toward building a robust, circular economy and securing strategic mineral supply chains essential for India’s clean energy transition and manufacturing growth. 

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an incentive scheme worth Rs 15 billion to develop recycling infrastructure for extracting critical minerals from secondary sources. The scheme is a core component of the National Critical Mineral Mission (NCMM) and aims to enhance domestic capabilities while reducing import reliance for key industrial materials.Recognising the long gestation period of the traditional mining value chain—spanning exploration, auctioning, and operationalisation—the Ministry of Mines has termed this initiative a “prudent way to ensure supply chain sustainability in the near term” through secondary-source recycling.Set to run for six years, from FY 2025–26 to FY 2030–31, the scheme will support the recycling of eligible feedstock such as e-waste, lithium-ion battery (LIB) scrap, and other non-electronic scrap including catalytic converters from end-of-life vehicles.The incentive programme is open to both large-scale recyclers and emerging start-ups. Notably, one-third of the total outlay has been reserved for small and new recyclers. The scheme applies to new facility setups as well as capacity expansion, modernisation, and diversification of existing units.The focus will be strictly on the part of the value chain engaged in the extraction of critical minerals—not those involved merely in producing black mass.The incentive structure includes:20 per cent capital expenditure subsidy on plant, machinery, and utilities for timely commissioning.Operating expenditure subsidy on incremental sales over the base year (FY 2025–26), with 40 per cent disbursed in the second year and 60 per cent in the fifth year (FY 2030–31), contingent on meeting specified sales thresholds.To ensure broader participation, incentives per entity are capped at Rs 500 million for large recyclers and Rs 250 million for small ones, including a ceiling of Rs 100 million and Rs 50 million respectively for operational expenditure support.The government expects the scheme to enable the development of at least 270 kilotonnes of annual recycling capacity, resulting in the production of around 40 kilotonnes of critical minerals each year. This is projected to attract Rs 80 billion in investment and generate up to 70,000 direct and indirect jobs.The scheme’s formulation followed extensive consultations with industry players and stakeholders through meetings, seminars, and expert sessions. It marks a significant step toward building a robust, circular economy and securing strategic mineral supply chains essential for India’s clean energy transition and manufacturing growth. 

Next Story
Infrastructure Urban

Jyoti Structures FY26 profit rises 56.5%

Jyoti Structures (JSL) recently reported strong financial results for the quarter and year ended 31 March 2026, driven by disciplined execution, cost management and steady progress across its order book.For Q4 FY2025-26, total income rose 44.2 per cent to Rs 2.41 billion from Rs 1.67 billion in Q4 FY2024-25. EBITDA increased 58.6 per cent to Rs 237 million, while EBITDA margin improved by 89 basis points to 9.84 per cent. Profit before tax grew 53.3 per cent to Rs 188.5 million, and net profit rose 51.9 per cent to Rs 181.4 million.For FY2025-26, total income grew 53.1 per cent to Rs 7.72 bill..

Next Story
Infrastructure Energy

Cat BEPU to Power Doppstadt Separator at IFAT 2026

Caterpillar’s Cat Battery Electric Power Unit (BEPU) has been selected by Doppstadt to power its SWS 6 Spiral Shaft Separator, which will be showcased for the first time at IFAT 2026 in Munich, Germany, from 4–7 May.The compact plug-and-play BEPU is designed to replace a diesel engine within the same space, using the same mounting locations and relative machine position. It integrates the battery, motor, inverter, onboard charging, cooling and controls, enabling OEMs to electrify existing chassis platforms without extensive redesign.Caterpillar and Cat dealer Zeppelin Power Systems have be..

Next Story
Infrastructure Urban

VECV sales rise 6.9% in April 2026

VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, recorded sales of 7,318 units in April 2026, compared to 6,846 units in April 2025, registering 6.9 per cent growth. The total included 7,159 units under the Eicher brand and 159 units under the Volvo brand.Eicher branded trucks and buses reported sales of 7,159 units during the month, up 6.6 per cent from 6,717 units in April 2025. In the domestic commercial vehicle market, Eicher sales rose 8.6 per cent to 6,797 units from 6,257 units a year earlier.Exports declined 21.3 per cent, with VECV recording 362 units in ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement