Cabinet Approves ₹1,500 Crore Incentive Scheme, Opens New Opportunities for Employment and Investment

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹1,500 crore incentive scheme to boost critical mineral recycling in the country. The scheme aims to develop the capacity to extract and reuse valuable minerals from battery waste and e-waste.

Part of the National Critical Mineral Mission:

This initiative is a key component of the National Critical Mineral Mission (NCMM), designed to strengthen India’s mineral supply chain and reduce dependence on imports. As mineral exploration, auctions, and mine development take time, recycling secondary sources is being seen as a practical short-term solution for ensuring mineral availability.

Duration and Beneficiaries:

The scheme will be implemented for six years (FY 2025-26 to FY 2030-31).

• Eligible feedstock includes e-waste, lithium-ion battery (LIB) scrap, and catalytic converters from end-of-life vehicles.
• Both large, established recyclers and small units, including start-ups, will benefit from the scheme.
• It will support investments in new units, capacity expansion, modernization, and diversification of existing facilities.

Incentive Structure

• Capex Subsidy: 20% capital subsidy on plant and machinery.
• Opex Subsidy: Incentives based on incremental sales over the base year (FY 2025-26).
• Incentives are capped at ₹50 crore for large entities and ₹25 crore for smaller ones.

Expected Outcomes

• Annual recycling capacity of at least 270 kilo tonnes, leading to 40 kilo tonnes of critical mineral production.
• An estimated ₹8,000 crore in new investments.
• Creation of nearly 70,000 direct and indirect jobs across the sector.

The scheme has been framed after multiple rounds of consultation with industry stakeholders.