The Union Cabinet Wednesday approved a Rs 1,500-crore incentive scheme to develop recycling capacity in India for the separation and production of critical minerals from secondary sources, the government said in a release.
The scheme is part of the National Critical Mineral Mission (NCMM), aimed at building domestic capacity and supply chain resilience in critical minerals.
“The Scheme will have a tenure of six years from FY 2025-26 to FY 2030-31 and will provide incentives for the recycling value chain involved in actual extraction of critical minerals,” said the government.
The critical mineral value chain has a gestation period before it can supply critical minerals to Indian industry. Recycling of secondary sources is a prudent way to ensure supply chain sustainability in the near term.
The scheme will provide a 20% Capex subsidy on plant & machinery, equipment, and associated utilities for starting production within a specified timeframe. It will have eligible feedstock which would include e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste & LIB scrap.
One-third of the scheme’s outlay has been earmarked for small and new recyclers, including start-ups.
The scheme will provide incentives for investments in new units, as well as expansion of capacity/modernization and diversification of existing units. Additionally, the incentives will comprise 20 per cent Capex subsidy and Opex subsidy, which will be an incentive on incremental sales over the base year.
The scheme is expected to develop at least 270 kilo tons of annual recycling capacity, resulting in around 40 kilo tons of annual critical mineral production. It is expected to bring in about Rs 8,000 crore of investment and create close to 70,000 direct and indirect jobs. It is also expected to benefit both large, established recyclers, as well as small, new recyclers, including start-ups. 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.