Centre Approves Rs 15 Billion Plan for Critical Mineral Recycling

04 Sep 2025 CW Team

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.

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