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
