The Union Cabinet chaired by the Prime Minister Mr. Narendra Modi recently approved a Rs.1,500 crore Incentive Scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources.

This scheme is part of the National Critical Mineral Mission (NCMM), which is aimed at building the domestic capacity of and supply chain resilience in critical minerals.

The critical mineral value chain comprising exploration, auction and mine operationalization, and acquisition of foreign assets, has a gestation period before they could supply critical minerals to Indian industry. A prudent way to ensure supply chain sustainability in the near term is through the recycling of secondary sources.

The Scheme will have tenure of six years from FY 2025-26 to FY 2030-31. Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste & LIB scrap e.g. catalytic convertors in end-of-life vehicles.

Expected beneficiaries will be both large, established recyclers, as well as small, new recyclers (including start-ups), for whom one-third of the scheme outlay has been earmarked.  The Scheme will be applicable to investments in new units as well as expansion of capacity / modernization and diversification of existing units.

The Scheme will provide incentive for the recycling value chain which is involved in actual extraction of critical minerals, and not the value chain involved in only black mass production.

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.