Rs 1,500 crore Incentive Scheme to develop recycling capacity

For separation, production of critical minerals from secondary sources

IH News Desk

NATIONAL, September 03, 2025: The Union Cabinet chaired Prime Minister Narendra Modi Wednesday approved an Rs 1,500 crore Incentive Scheme to develop recycling capacity in India for the separation and production of critical minerals from secondary sources. This scheme is part of the National Critical Mineral Mission (NCMM) aiming to build domestic capacity and supply chain resilience in critical minerals.

The scheme will have six-year tenure from FY 2025-26 to FY 2030-31, with eligible feedstock being e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste and LIB scrap. The scheme will benefit both large and small recyclers, with one-third of the scheme outlay earmarked for start-ups.

The scheme will be applicable to investments in new units, expansion of capacity, modernization, and diversification of existing units.

Incentives under the scheme include a 20% Capex subsidy on plant and machinery, equipment, and associated utilities for starting production within a specified timeframe, and an Opex subsidy on incremental sales over the base year. The total incentive per entity will be subject to an overall ceiling of Rs 50 crore for large entities and Rs 25 crore for small entities.

Key outcomes of the scheme include developing at least 270 kilo ton of annual recycling capacity, resulting in around 40 kilo ton annual critical mineral production, bringing in about Rs.8,000 crore of investment, and creating close to 70,000 direct and indirect jobs.

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