Cabinet clears Rs. 1,500 crore (US$ 170.4 million) scheme to promote critical mineral recycling

The Union Cabinet on September 3, 2025, cleared a Rs. 1,500 crore (US$ 170.4 million) incentive scheme under the National Critical Mineral Mission (NCMM) to promote recycling of e-waste and battery waste for the extraction of critical minerals. The scheme will run from FY26 to FY31 as a near-term solution until domestic mining and exploration of critical minerals yield results. Eligible feedstock includes e-waste, lithium-ion battery scrap, and catalytic converters from end-of-life vehicles. Large recyclers, start-ups, and smaller players will benefit, with one-third of the allocation reserved for small and new recyclers.
The scheme offers a 20% capital subsidy on plant and equipment for units commencing production within the set timeframe, with reduced benefits for delays. Operating subsidies linked to incremental sales will be disbursed in two stages between FY27 and FY31, subject to performance. Incentives are capped at Rs. 50 crore (US$ 5.7 million) for large units and Rs. 25 crore (US$ 2.8 million) for smaller ones. The initiative is expected to create 270 kilo tonnes of recycling capacity, producing 40 kilo tonnes of critical minerals, attract Rs. 8,000 crore (US$ 908.9 million) in investment and generate around 70,000 direct and indirect jobs. 

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