Major Policy Intervention
Government Greenlights ₹1,500 Crore Mineral Recycling Incentive: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹1,500 crore incentive scheme to promote recycling of critical minerals from secondary sources. The initiative falls under the National Critical Mineral Mission (NCMM) and seeks to enhance domestic production, reduce dependence on imports, and strengthen the nation’s supply chain resilience.
Static GK fact: India currently imports over 70% of its lithium and cobalt requirements, making recycling a key strategic necessity.
Focus of the Scheme
The scheme emphasizes mineral recovery from e-waste, lithium-ion battery scrap, and catalytic converters from end-of-life vehicles. These sources are rich in lithium, cobalt, nickel, and other rare elements crucial for clean energy and electronics manufacturing.
Scheme Tenure
The programme will operate for six years, covering FY 2025–26 to FY 2030–31. During this period, financial support will be extended to both large industries and new entrants.
Static GK fact: The Government of India launched the National Critical Mineral Strategy in 2023 to identify 30 key minerals vital for energy transition.
Beneficiaries
Two categories of beneficiaries are targeted:
- Large established companies with recycling capabilities
- Start-ups and new entrants, with one-third of the outlay reserved for them
Funding will cover setting up new units, expanding capacity, and upgrading technology. Importantly, only those engaged in actual mineral extraction from waste—not just black mass production—will qualify.
Subsidy Structure
The support is split into capital expenditure (Capex) and operational expenditure (Opex) incentives.
- Capex subsidy: 20% subsidy on eligible plant, machinery, and utilities
- Opex subsidy: Linked to incremental sales; 40% support in Year 2 and 60% in Year 5, provided targets are met
The scheme ensures that recycling facilities achieve both technological scale and long-term economic viability.
Static GK Tip: Similar production-linked incentive (PLI) schemes exist in India for electronics, semiconductors, and solar manufacturing.
Incentive Caps
- Large entities: Maximum subsidy of ₹50 crore (₹10 crore Opex cap)
- Small entities: Maximum subsidy of ₹25 crore (₹5 crore Opex cap)
This differential ensures wider participation while preventing excessive concentration of funds among bigger players.
Significance of Critical Minerals
Critical minerals are essential for renewable energy, electric mobility, defence technologies, and electronics manufacturing. Their limited supply and geographical concentration make them strategically sensitive. Recycling reduces supply risks, conserves resources, and aligns with India’s net-zero commitments.
Static GK fact: The United States, Japan, and the European Union have also launched critical mineral recycling programmes to safeguard their industries.
Static Usthadian Current Affairs Table
Government Greenlights ₹1,500 Crore Mineral Recycling Incentive:
| Topic | Detail |
| Scheme outlay | ₹1,500 crore |
| Duration | FY 2025–26 to FY 2030–31 |
| Administered by | National Critical Mineral Mission |
| Focus sectors | E-waste, lithium-ion batteries, catalytic converters |
| Beneficiaries | Large companies and start-ups |
| Capex subsidy | 20% of eligible expenditure |
| Opex subsidy | 40% in Year 2, 60% in Year 5 |
| Large entity cap | ₹50 crore (₹10 crore Opex cap) |
| Small entity cap | ₹25 crore (₹5 crore Opex cap) |
| Key minerals | Lithium, cobalt, nickel, rare earths |
