The Union Cabinet on Wednesday approved a ₹1,500 crore incentive scheme under the National Critical Mineral Mission to promote the recycling of critical minerals, aiming to strengthen domestic supply-chain resilience.
The six-year plan, spanning financial years 2025-26 through 2030-31, will focus on extracting valuable materials from secondary sources such as e-waste, lithium-ion battery scrap and catalytic converters from end-of-life vehicles. One-third of the outlay has been reserved specifically for small recyclers and startups to enhance inclusivity.
Under the scheme, eligible units will receive a 20 percent capital subsidy on equipment and utility infrastructure if they commence production within the stipulated timeframe. Operational subsidies, tied to incremental sales over a 2025-26 baseline year, will be disbursed in two stages—40 percent in the second year and 60 percent in the fifth—subject to meeting sales thresholds.
Each participating entity will face a cap on total incentives—₹50 crore for large outfits and ₹25 crore for smaller ones, with respective operational subsidy ceilings of ₹10 crore and ₹5 crore. The scheme supports both newly established recycling units and the modernization or expansion of existing facilities.
The government projects the scheme will generate an annual recycling capacity of 270 kilotonnes, yielding approximately 40 kilotonnes of critical minerals per year. This is expected to attract investment worth around ₹8,000 crore and create nearly 70,000 direct and indirect jobs.
The announcement aligns closely with India’s push for sustainable mobility and its broader green energy transition ambitions. Industry analysts believe that by promoting a circular economy and reducing import reliance on strategic raw materials—such as lithium, cobalt, nickel, manganese and rare earths—the scheme will bolster the country’s EV and electronics sectors while supporting foundational goals like “Make in India” and “Atmanirbhar Bharat.”
