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Cabinet clears ₹1,500 cr scheme to promote critical mineral recycling | Current Affairs | Vision IAS

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Cabinet clears ₹1,500 cr scheme to promote critical mineral recycling

2 min read

Incentive Scheme for E-Waste and Battery Waste Recycling

The Union Cabinet has approved a ₹1,500 crore incentive scheme to promote the recycling of e-waste and battery waste for extracting critical minerals. This move is part of efforts to strengthen India's supply chain resilience in the critical minerals sector.

Scheme Details

  • Duration: The scheme will run for six years, from 2025-26 to 2030-31, under the National Critical Mineral Mission (NCMM). 
  • Objective: It aims to offer a near-term solution to secure raw materials until mining and exploration projects yield results. 

Eligible Feedstock

  • E-waste
  • Lithium-ion battery (LIB) scrap
  • Other categories like catalytic converters from end-of-life vehicles

Beneficiaries

  • Large, established recyclers
  • Smaller players and start-ups

One-third of the financial outlay is earmarked for small and new recyclers, including startups.

Incentive Structure

  • Capital Subsidy: 20% on plant, machinery, equipment, and associated utilities, contingent on starting production within the specified timeframe. 
    • Delayed timelines will result in a reduced subsidy.
  • Operating Expense Subsidy: Linked to incremental sales over the base year (2025-26). 
    • Disbursement: 40% in the second year and 60% in the fifth year (2026-27 to 2030-31), subject to sales thresholds.

Incentive Cap

  • ₹50 crore for large units
  • ₹25 crore for small units
  • Maximum operating expense subsidy: ₹10 crore for large units and ₹5 crore for small units

The scheme supports the establishment of new recycling units, as well as the expansion, modernisation, and diversification of existing units.

Expected Outcomes

  • Create at least 270 kilo tons of annual recycling capacity
  • Produce about 40 kilo tons of critical minerals
  • Attract ₹8,000 crore worth of investment
  • Generate approximately 70,000 direct and indirect jobs
  • Tags :
  • National Critical Mineral Mission (NCMM)
  • Incentive Scheme for E-Waste and Battery Waste Recycling
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