The Union Cabinet has approved an incentive scheme worth ₹1,500 crore aimed at promoting the recycling of critical minerals in the country. The move is expected to reduce import dependence, ensure a sustainable supply of essential minerals, and support India’s transition to a green economy.
The incentives under the Scheme will comprise 20% Capex subsidy on plant & machinery, equipment and associated utilities for starting production within specified timeframe, beyond which reduced subsidy applicable; and Opex subsidy, which will be an incentive on incremental sales over the base year (FY 2025-26) viz. 40% of eligible Opex subsidy in the 2nd year and balance 60% in the 5th year from FY 2026-27 to FY 2030-31 on achievement of specified threshold incremental sales. In order to ensure greater number of beneficiaries, total incentive (Capex plus Opex subsidy) per entity will be subject to an overall ceiling of Rs.50 crore for large entities and Rs.25 crore for small entities, within which there will be a ceiling for Opex subsidy of Rs.10 crore and Rs.5 crore respectively.
In terms of key outcomes, the Scheme incentives are expected to develop 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. Several rounds of consultations with industry and other stakeholders have been held through dedicated meetings, seminar sessions, etc. before formulating the Scheme.