The Indian government has taken a big step to boost recycling of critical minerals. On September 3, the Union Cabinet, led by Prime Minister Narendra Modi, approved a new Rs 1,500 crore scheme to encourage recycling and help India produce more essential minerals from secondary sources like waste.
This plan is part of the National Critical Mineral Mission (NCMM), which aims to build India’s own capacity to find, mine, and supply valuable minerals. Creating these minerals through exploration and mining takes time. So, recycling e-waste, batteries, and other scrap materials is a smart way to get critical minerals quickly and sustainably.
The new scheme will run for six years, from FY 2025-26 to FY 2030-31. It focuses on recycling feedstock like electronic waste, lithium-ion battery scrap, and other vehicle scrap such as catalytic converters. Both big recycling companies and small startups can benefit — with about one-third of the funds reserved for smaller players and startups.
The scheme supports investments in new recycling units as well as upgrading existing facilities. It targets those involved in extracting critical minerals from waste, not just processing black mass or raw material.
To motivate the recycling industry, the government will offer incentives. These include a 20% capital expenditure (Capex) subsidy for purchasing plants and machinery if the setup is completed within the specified timeline. There’s also an operational subsidy (Opex) for increased sales, paid out over several years—40% in the second year and 60% in the fifth year, based on reaching certain sales targets.
The total incentives per company will be capped. Large companies can receive up to Rs 50 crore, while smaller companies can get up to Rs 25 crore. The Opex subsidy won’t exceed Rs 10 crore for big firms and Rs 5 crore for smaller ones.
This initiative aims to create at least 270,000 tonnes of recycling capacity every year, producing around 40,000 tonnes of critical minerals. It is expected to attract about Rs 8,000 crore in investments and generate nearly 70,000 jobs directly and indirectly.
Industry experts and stakeholders were consulted multiple times before finalizing this scheme, ensuring it meets the needs of recycling companies, investors, and India’s overall security in critical minerals.
This move marks a major boost for India’s efforts to become more self-reliant in critical mineral supply through recycling, creating new business opportunities, and strengthening the nation’s green economy.
