The Union Cabinet has approved a ₹1,500 crore scheme under the National Critical Mineral Mission (NCMM) to promote recycling of e-waste, lithium-ion batteries, and catalytic converters.

Government Incentive Scheme for Critical Mineral Recycling

• Outlay: ₹1,500 crore to promote e-waste and battery waste recycling for recovery of critical minerals.
• Purpose: Serve as a near-term solution until mining and exploration projects become productive.
• Launched under: National Critical Mineral Mission (NCMM)
• Ministry: Ministry of Mines
• Aim: Strengthen India’s supply chain resilience for critical minerals. Create a domestic recycling ecosystem to secure raw materials for clean energy, EVs, and electronics industries.
  

Key Features of the Scheme

• Duration: Six years (2025-26 to 2030-31)
• Eligible Feedstock:
  • E-waste
  • Lithium-ion battery scrap
  • Catalytic converters from end-of-life vehicles
• Beneficiaries: Large recyclers and startups, 1/3rd of funds reserved for small/new recyclers
• Incentives
  • Capital Subsidy: 20% on plant, machinery, and utilities
  • Operating Expense (OPEX) Subsidy: Linked to incremental sales over the base year
  • Disbursal: 2-part payment — 40% in 2nd year, 60% in 5th year
  • Cap: Large units – ₹50 crore (₹10 crore for OPEX)
    • Small units – ₹25 crore (₹5 crore for OPEX)
    • Supports new units, as well as expansion, modernization, and diversification of existing units

About Critical Minerals

• About: Critical minerals are minerals that are essential for economic growth and national security. A limited availability or concentration of these minerals in a few countries can create vulnerabilities in supply chains.

Significance of Critical Minerals for India

• Resource Base: Critical minerals serve as vital raw materials for industries such as:
  • Electronics
  • Automotive
  • Aerospace
  • Renewable energy
• Manufacturing: They are essential for the production of Semiconductors, Batteries (including lithium-ion batteries for EVs) and Magnets (used in wind turbines and electronic devices).
• Defense Sector: Critical minerals are indispensable for technologies like Missile guidance systems, Radar systems, Communication and surveillance equipment
• Reducing Dependence: Developing local sources of critical minerals reduces India’s reliance on imports from politically sensitive regions, enhancing strategic autonomy.

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