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Cabinet Approves ₹1,500 Cr Scheme For Critical Mineral Recycling

Synopsis:


The Union Cabinet has approved ₹1,500 crore under the National Critical Mineral Mission for recycling e-waste, battery and vehicle scrap over FY 2025-26 to FY 2030-31. The scheme is expected to yield 270 kt capacity, produce 40 kt of minerals, and create 70,000 jobs. | Source: Economic Times | Published on Sept 03, 2025


Disclaimer:
This content has been published for informational purposes only. Bajaj Broking is not affiliated with, nor does it endorse or assume any responsibility for, the source material. Readers are advised to consult the original publication for complete and accurate context.

Union Cabinet news today

As quoted by Economic Times, the Union Cabinet approved a scheme to enhance recycling of critical minerals from secondary sources, at an expense of ₹1,500 crore. This is part of the National Critical Mineral Mission (NCMM) initiative, facilitating the improvement of India's domestic recycling capacity for a more resilient supply chain.

Also read: Swiggy Increases Platform Fee to ₹15 Amid Festive Demand and Losses

Key Takeaways

  • The program will run for the next six years, from FY 2025-26 to FY 2030-31 and will support the recycling of e-waste, scrap lithium-ion batteries, and catalytic converters.  

  • All recyclers, including existing operators and small firms (including start-up firms), are eligible for incentives with one-third of the funds reserved for small and start-up entities.  

  • Incentives will include cap-ex and op- ex incentives with limits of ₹ 50 crore for regular entities and ₹ 25 crore for small entities.  

  • It aims to create an annual recycling capacity of 270 kt per year and approximately 40 kt of critical minerals, attract ₹8000 crore of project investments and create close to 70,000 jobs in total. 

Also read: BHEL Wins ₹2,600 Cr MB Power Order for Anuppur Thermal Project

Scheme Design

The program will be run over six financial years (2025-26 to 2030-31), and will encompass recycling streams including e-waste, lithium battery scrap, and catalytic converters from end-of-life vehicles. Financing is split 33% for smaller firms. You can use the funds whether you operate a new plant or if you are modernising. The support is specific to the extraction of critical minerals—not just for producing black mass.

Incentive Details

Subsidy Type

Benefit Structure

Caps (Large / Small)

Capex Subsidy

20% on plant, machinery, utilities; full only if production begins on time

₹50 cr / ₹25 cr

Opex Subsidy

Based on incremental sales; 40% subsidy in Year 2, 60% in Year 5

₹10 cr / ₹5 cr

Expected Outcomes

You will see that the government projects the program could deliver around 270 kilotonne of recycling capacity annually, and of that the program anticipates about 40 kilotonne of extracted critical minerals each year. It is also likely that it will likely attract approximately ₹8,000 crore in investments, and create nearly 70,000 direct and indirect jobs.

Strategic Implications

If you are following the resource strategy of India, you may see that recycling is central to the strategy of securing minerals for electronics and energy transitions. Since opening new mines or acquisitions abroad may take a longer time frame, this strategy provides a near-term support measure to meet domestic demand.

Also read: Government Cuts GST On Daily Items From 22 September—Key Updates

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