Cabinet Approves ₹1500 Crore Incentive Scheme to Boost Critical Mineral Recycling.

Overview & Strategic Context

On September 3, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a ₹1,500 crore incentive scheme under the National Critical Mineral Mission (NCMM). The scheme is designed to strengthen the domestic supply chain for critical minerals by promoting recycling from e-waste, lithium-ion battery scraps, and end-of-life vehicle scrap such as catalytic converters .

Duration and Target Feedstocks

The scheme will run over six years (FY 2025-26 to FY 2030-31) and is applicable to:

• E-waste
• Lithium-ion battery (LIB) scrap
• Other non-e-waste scrap (e.g., catalytic converters) .

Beneficiaries & Allocation

Eligible beneficiaries include:

• Established large recyclers
• Small/new recyclers and start-ups, who’ll receive one-third of the total outlay .

Incentive Structure

The scheme features two types of subsidies:

1. Capex Subsidy (20%)
   • A 20% capital subsidy on plant, machinery, equipment, and utilities for units starting production within a defined timeframe.
   • Reduced support applies for delayed production .
2. Opex Subsidy (Operating Expense)
   • Based on incremental sales over the FY 2025-26 base year.
   • Paid in two tranches: 40% in Year 2, and 60% in Year 5 (spanning FY 2026-27 to FY 2030-31), contingent on hitting sales thresholds .

Entity-Wise Cap:

• Large entities: Max total incentive of ₹50 crore, with Opex capped at ₹10 crore
• Small entities: Max incentive of ₹25 crore, Opex capped at ₹5 crore .

Expected Outcomes

The government anticipates:

• Recycling Capacity: At least 270 kilotonnes annually
• Critical Mineral Production: Approximately 40 kilotonnes per year
• Investment: Around ₹8,000 crore
• Employment Generation: Nearly 70,000 direct and indirect jobs.

Significance for Industry & Economy

• Supply Chain Resilience: Recycling critical minerals offers a near-term solution while mining and exploration ramp up.
• Circular Economy: Supports sustainable resource use and waste-to-value conversion.
• Green Transition: Enables critical mineral availability for high-tech manufacturing—electronics, EVs, renewable energy, and more .
• Inclusivity: By earmarking funds for small players and start-ups, the scheme promotes wider participation and innovation in the recycling ecosystem.