Cabinet approves Incentive Scheme to promote Critical Mineral Recycling

Posted 04 Sep 2025

2 min read

Article Summary

The Cabinet approved a ₹1,500 crore scheme under NCMM to promote critical mineral recycling, ensuring supply chain sustainability, attracting investments, and creating jobs over six years.

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.