Cabinet clears ₹1,500 cr scheme to promote critical mineral recycling
Kartavya Desk Staff
Source: BS
Context: The Union Cabinet has approved a ₹1,500 crore scheme under the National Critical Mineral Mission (NCMM) to promote recycling of e-waste, lithium-ion batteries, and catalytic converters for recovery of critical minerals.
About Cabinet clears ₹1,500 cr scheme to promote critical mineral recycling:
What it is?
• A government incentive scheme worth ₹1,500 crore to promote recycling of e-waste and battery waste for recovery of critical minerals.
• It will serve as a near-term solution until mining and exploration projects begin to yield results.
Launched under: National Critical Mineral Mission (NCMM).
Ministry: Ministry of Mines.
• To strengthen India’s supply chain resilience for critical minerals.
• To create a domestic recycling ecosystem for securing raw materials needed for clean energy, EVs, and electronics industries.
Features:
• Duration: Six years (2025-26 to 2030-31).
• Eligible feedstock: e-waste, lithium-ion battery scrap, catalytic converters from end-of-life vehicles.
• Beneficiaries: Both large recyclers and startups; 1/3rd of financial outlay earmarked for small/new recyclers.
• Incentives: 20% capital subsidy on plant, machinery, and utilities. Operating expense subsidy linked to incremental sales over the base year. Subsidy disbursal in two parts: 40% (2nd year) + 60% (5th year).
• 20% capital subsidy on plant, machinery, and utilities.
• Operating expense subsidy linked to incremental sales over the base year.
• Subsidy disbursal in two parts: 40% (2nd year) + 60% (5th year).
• Cap: Large units – ₹50 crore (₹10 crore for OPEX). Small units – ₹25 crore (₹5 crore for OPEX).
• Large units – ₹50 crore (₹10 crore for OPEX).
• Small units – ₹25 crore (₹5 crore for OPEX).
• Support for new units as well as expansion, modernization, and diversification of existing ones.
Significance:
• Expected to create 270 kilo tons annual recycling capacity.
• Yield ~40 kilo tons of critical minerals annually.
• Attract ₹8,000 crore investment.
• Generate ~70,000 jobs (direct + indirect).