Context: The Ministry of Mines has approved 58 companies as eligible participants under the Incentive Scheme for Promotion of Critical Mineral Recycling.
About Incentive Scheme for Promotion of Critical Mineral Recycling:
What it is?
- This is a dedicated financial intervention under the National Critical Mineral Mission (NCMM) designed to foster a circular economy in India’s mineral sector. It provides subsidies to companies that extract and refine critical minerals from secondary sources like electronic waste (e-waste), spent batteries, and industrial scrap.
Notified On: October 2, 2025.
Operational Tenure: FY 2025–26 to FY 2030–31 (6 years).
Governing Ministry: Ministry of Mines, Government of India.
Aim:
- The primary aim is to strengthen India’s critical mineral security by developing domestic recycling and refining capacity.
- It seeks to reduce the current heavy import dependence (often exceeding 80%) on minerals like lithium, cobalt, and nickel, which are essential for clean energy, defense, and advanced manufacturing.
Key Features:
- Financial Outlay: A total budget of ₹1,500 crore.
- Incentive Structure:
- Capex Subsidy: Provides a 20% subsidy on eligible capital expenditure for projects starting production on time. Rates decrease to 17% or 14% for delayed projects.
- Opex (Operating Expenditure) Subsidy: Linked to incremental sales over the base year (FY 2025-26). It is disbursed in stages (40% in Year 2 and 60% in Year 5) based on specific revenue thresholds.
- Hybrid Option: Beneficiaries can combine both Capex and Opex support within prescribed ceilings.
- Beneficiary Categories:
- Group A: Large entities with Global Manufacturing Revenue (GMR) ≥ ₹200 crore (Total ceiling: ₹50 crore).
- Group B: Smaller entities with GMR < ₹200 crore (Total ceiling: ₹25 crore).
- Targeted Waste Streams: Focuses on Urban Mining from e-waste, spent Lithium-ion batteries (LIB), permanent magnets, and catalytic converters.
- Eligibility: Open to registered Indian recyclers for both new (Greenfield) and modernization (Brownfield) projects.
Significance:
- Reduces vulnerability to global supply chain disruptions caused by the concentration of mining and processing in a few countries like China.
- Helps curb the annual foreign exchange outflow of over ₹80,000 crore spent on importing these minerals.
