Incentive Scheme to Promote Critical Mineral Recycling:
The Union Cabinet recently approved a Rs.1,500 crore Incentive Scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources.
- Incentive Scheme to Promote Critical Mineral Recycling is part of the National Critical Mineral Mission (NCMM), which is aimed at building the domestic capacity of and supply chain resilience in critical minerals.
- The Scheme will have a tenure of six years from Financial Year 2025-26 to Financial Year 2030-31.
- Total Outlay: Rs.1,500 crore
- Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste and LIB scraps.
- Expected beneficiaries will be both large, established recyclers, as well as small, new recyclers (including start-ups), for whom one-third of the scheme outlay has been earmarked.
- The Scheme will be applicable to investments in new units as well as expansion of capacity and modernization and diversification of existing units.
- The Scheme will provide incentive for the recycling value chain, which is involved in the actual extraction of critical minerals, and not the value chain involved in only black mass production.
- The incentives include a 20% capital subsidy on plant and machinery for projects that commence production within the stipulated timeframe and an operational subsidy tied to incremental sales.
- The operational support will be provided in tranches—40% in the second year and 60% in the fifth year—on meeting specific sales thresholds.
- 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 Scheme incentives are expected to develop at least 270 kilotons of annual recycling capacity, resulting in around 40 kilotons annual critical mineral production, bringing in about Rs.8,000 crore of investment, and creating close to 70,000 direct and indirect jobs.
