The Government of India has taken a decisive step toward ensuring resource security and promoting a circular economy with the launch of the Incentive Scheme to Promote Critical Mineral Recycling. This centrally sponsored initiative, implemented under the Ministry of Mines, is a key component of the National Critical Mineral Mission (NCMM)—aimed at reducing import dependence and building a self-reliant mineral ecosystem.
Overview of the Scheme
The Union Cabinet approved the scheme in September 2025, allocating a total outlay of ₹1,500 crore for implementation over six financial years (FY 2025–26 to FY 2030–31).
The Ministry of Mines issued the detailed operational guidelines through a gazette notification on September 8, 2025.
Key Objectives
- Reduce Import Dependence: Target critical minerals used in EVs, batteries, renewable energy, and electronics—reducing reliance on foreign sources.
- Promote Circular Economy: Encourage extraction and reuse of critical minerals from secondary sources, strengthening India’s domestic recycling ecosystem.
Eligible Feedstock and Activities
The incentive scheme supports recycling and recovery of critical minerals from specific feedstock types:
- E-waste (as per E-waste Management Rules, 2022)
- Lithium-ion battery (LIB) scrap
- Other sources such as permanent magnets, end-of-life vehicles, and spent catalysts
Note: Incentives are applicable only for the actual extraction of critical minerals—not for black mass production.
Both new and existing units (expansion, modernization, diversification) are eligible.
Financial Support Structure
Capital Expenditure (Capex) Subsidy
- 20% subsidy on plant and machinery for eligible recycling units
- Available upon commencement of production within the stipulated timeframe
Operational Expenditure (Opex) Subsidy
- Linked to incremental sales performance
- Disbursed in two tranches:
- 40% in Year 2
- 60% in Year 5
Beneficiary Classification and Incentive Caps
| Recycler Type | Criteria (GMR) | Total Incentive Cap (Capex + Opex) | Maximum Opex Cap |
|---|---|---|---|
| Group A (Large/Established) | ≥ ₹200 crore | ₹50 crore | ₹10 crore |
| Group B (Small/New Recyclers & Start-ups) | < ₹200 crore | ₹25 crore | ₹5 crore |
Special Provision: One-third of the total scheme outlay is reserved for small/new recyclers and start-ups (Group B).
Indicative allocation: ₹990 crore for Group A and ₹495 crore for Group B.
Application Process and Oversight
The scheme is managed by a Project Management Agency (PMA) under the Ministry of Mines.
- Application Start Date: October 2, 2025
- Deadline: April 1, 2026
- Submission: Through the official online portal of the Ministry of Mines
The PMA will oversee evaluation, monitoring, and performance tracking to ensure transparency and accountability.
Expected National Impact
The scheme is expected to deliver transformative results across India’s critical minerals ecosystem:
- Recycling Capacity: 270 kilotons per year
- Critical Mineral Output: 40 kilotons per year
- Investment Mobilized: ₹8,000 crore
- Employment Generation: Around 70,000 direct and indirect jobs
By reinforcing sustainable resource management and circular economy principles, this initiative strengthens India’s position in global clean energy supply chains and secures its mineral independence.
Conclusion
The ₹1,500 crore Critical Mineral Recycling Incentive Scheme is more than just an industrial policy—it’s a strategic move to fortify India’s clean energy transition, technological innovation, and long-term economic security.