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Cabinet approves Incentive Scheme to promote Critical Mineral Recycling | Current Affairs | Vision IAS
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Cabinet approves Incentive Scheme to promote Critical Mineral Recycling

Posted 04 Sep 2025

2 min read

Scheme is part of the National Critical Mineral Mission (NCMM).

  • Recycling of critical minerals aims to ensure near-term supply chain sustainability, given the long gestation period for new mining operations.

Key features of the scheme

  • Financial Outlay: ₹1,500 crore

National Critical Mineral Mission (NCMM)

  • NCMM from FY 2024-25 to FY 2030-31 aims to secure India's critical mineral supply chain by ensuring mineral availability from domestic and foreign sources.
  • The NCMM encompasses all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.
  • Tenure: Six years, from FY 2025-26 to FY 2030-31
  • Eligible Feedstock: Includes e-waste, Lithium-Ion Battery (LIB) scrap, and other scraps such as catalytic converters from end-of-life vehicles.
  • Beneficiaries: Both large and small/new recyclers (including start-ups), with one-third of the outlay for small entities.
  • Incentive Mechanism:
    • 20% capital expenditure (capex) subsidy on plant and machinery for timely production.
    • Operational expenditure (opex) subsidy on incremental sales: 40% in the 2nd year and 60% in the 5th year (FY 2026-27 to FY 2030-31)
  • Incentive Ceilings: Total incentives capped at ₹50 crore for large entities and ₹25 crore for small entities.
  • Expected Outcomes
    • Projected to develop 270 kilotons of annual recycling capacity, resulting in 40 kilotons of annual critical mineral production
    • Attracting ₹8,000 crore in investment, and 
    • Creating 70,000 direct and indirect jobs.
  • Tags :
  • National Critical Mineral Mission (NCMM).
  • Critical Mineral Recycling
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