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 Transport

Sonowal Unveils Eight Projects at NMPA’s Golden Jubilee

Union Minister for Ports, Shipping and Waterways, Shri Sarbananda Sonowal, inaugurated the Curtain Raiser Ceremony of the Golden Jubilee Celebrations of the New Mangalore Port Authority (NMPA) at Bharat Mandapam. To commemorate the milestone, he unveiled eight major maritime infrastructure projects designed to strengthen India’s port network, enhance logistics performance, and promote sustainability. These include a modern cruise terminal, new covered storage facilities, a 150-bed multi-speciality hospital, expanded truck terminals, and improved port access infrastructure aimed at enhancing..

Next Story
Infrastructure Energy

India To Boost US LPG Imports, Cut Middle East Reliance

India is planning to reduce imports of liquefied petroleum gas (LPG) from the Middle East as state-owned refiners prepare to ramp up purchases from the United States, according to sources familiar with the matter. The move aligns with New Delhi’s efforts to expand energy cooperation and secure a broader trade deal with Washington. State refiners have already notified their traditional LPG suppliers in Saudi Arabia, the United Arab Emirates, Kuwait and Qatar of the potential reduction in imports. Although the exact size of the supply cut was not disclosed, earlier reports suggested that Indi..

Next Story
Infrastructure Energy

UK Sanctions Nayara Energy in Crackdown on Russian Oil

The United Kingdom has announced fresh sanctions on 90 entities, including Indian refiner Nayara Energy Limited, in its latest bid to curb Russian oil revenues and weaken President Vladimir Putin’s war funding. The sanctions, unveiled jointly by the Foreign, Commonwealth and Development Office (FCDO) and the UK Treasury, aim to disrupt networks supporting Moscow’s crude exports amid the ongoing war in Ukraine. According to the FCDO, the new restrictions are intended to “strike at the heart of Putin’s war funding” by targeting firms and assets that enable Russia’s energy trade. “..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?