The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a ₹1,500 crore incentive scheme to develop recycling capacity for the recovery and production of critical minerals from secondary sources.
The initiative is part of the National Critical Mineral Mission (NCMM), aimed at building domestic capacity and ensuring supply chain resilience in critical minerals.
According to the Ministry of Mines, the scheme will be implemented for six years from FY 2025–26 to FY 2030–31. It will cover recycling of e-waste, lithium-ion battery (LIB) scrap, and other end-of-life materials such as catalytic converters.
The scheme will benefit both large established recyclers and small new entrants, including start-ups. One-third of the total outlay has been earmarked for smaller players.
Incentives include a 20% capital subsidy on plant and machinery for units beginning production within the specified period, along with an operating subsidy on incremental sales over the base year (FY 2025–26). The operating subsidy will be provided in phases—40% in the second year and 60% in the fifth year.
To ensure wider participation, the total incentive has been capped at ₹50 crore per large entity and ₹25 crore per small entity, with limits on operating subsidies of ₹10 crore and ₹5 crore respectively.
The Ministry said the scheme is expected to create at least 270 kilo tonnes of annual recycling capacity, resulting in the production of about 40 kilo tonnes of critical minerals every year. It is also projected to bring in investments of nearly ₹8,000 crore and generate close to 70,000 direct and indirect jobs.