Incentive Scheme for Promotion of Critical Mineral Recycling
- Context : The Ministry of Mines has approved 58 companies under the Incentive Scheme for Promotion of Critical Mineral Recycling, marking a major step in strengthening India’s critical mineral security and circular economy.
- The scheme, notified on 2nd October last year, has a total outlay of ₹1,500 crore and is part of the broader National Critical Mineral Mission.
- It aims to develop domestic recycling capacity for critical minerals from lithium-ion batteries, e-waste, and industrial scrap to reduce import dependence and support clean energy and advanced manufacturing.
About Incentive Scheme for Promotion of Critical Mineral Recycling
- The Incentive Scheme for Promotion of Critical Mineral Recycling is part of the National Critical Mineral Mission, aimed at strengthening domestic capacity and supply chain resilience in critical minerals.
- The scheme has a tenure of six years (FY 2025–26 to FY 2030–31) and focuses on recycling of e-waste, lithium-ion battery scrap, and other industrial scrap to recover critical minerals.
- It supports both large recyclers and small/new recyclers (including start-ups), with one-third of the total outlay reserved for smaller players to encourage wider participation.
- Incentives are provided for full recycling value chains (not just black mass production), including a 20% capital subsidy on plant and machinery and an operational subsidy linked to incremental sales performance.
- Financial support is capped at ₹50 crore for large entities and ₹25 crore for small entities, with structured operational subsidies released in phases based on production milestones.
