Union Coal and Mines Minister G Kishan Reddy on Monday, 21 September assured India's recycling industry that the government would swiftly examine its key demands and pursue necessary policy reforms, as the country works to build a robust critical mineral recycling ecosystem and advance its circular economy ambitions. The pledge was made in New Delhi at the Material Recycling Association of India's (MRAI) National Seminar themed 'India's Critical Mineral Recycling Ecosystem and Circular Economy.'

What the Government Committed

Minister Reddy said the government is preparing a dedicated incentive scheme for critical mineral recycling and has earmarked nearly ₹34,000 crore for critical mineral development initiatives. He added that Centres of Excellence are being proposed through IITs and other technology institutions to drive research and develop advanced recovery and processing technologies.

Reddy framed these moves as aligned with Prime Minister Narendra Modi's vision of self-reliance, sustainability, and technological innovation — underscoring that recycling is increasingly central to India's resource security strategy and its effort to reduce dependence on both imports and primary mining.

Industry Concerns That Prompted the Assurance

The minister's commitment followed pointed representations by industry stakeholders who raised several unresolved policy grievances. Chief among them was the mandatory Pre-shipment Inspection Certificate (PSIC) framework governing imports of ferrous and non-ferrous metal scrap — a regime that MRAI argued has disrupted operations and inflated costs. The association proposed replacing it with a technology-driven inspection framework based at Indian ports.

Industry representatives also flagged import duties on aluminium scrap and called for reforms to the Extended Producer Responsibility (EPR) regime. Notably, the sector pushed for formal recognition as an industry segment, contending that such status would meaningfully improve access to finance, technology, and government support programmes.

Why Critical Mineral Recycling Matters for India

According to Reddy, India has the potential to emerge as a significant secondary source of critical minerals by recovering valuable materials from discarded products and industrial waste — a pathway that would also reduce the environmental footprint of conventional mining. This comes amid a broader global scramble for critical minerals such as lithium, cobalt, and rare earth elements, which are essential for electric vehicles, semiconductors, and clean energy infrastructure.

Reddy called for a whole-of-government and whole-of-society approach, identifying employment generation, reverse logistics, and domestic processing capabilities as the three key pillars of the recycling ecosystem. This is the third such high-level engagement between the Centre and recycling sector stakeholders this year, reflecting growing policy urgency around supply chain resilience.

What Comes Next

The government has not yet published a formal timeline for the incentive scheme or the PSIC reform, but Reddy's fast-track assurance signals that concrete proposals are expected in the near term. Industry bodies will be watching closely for follow-through, particularly on the EPR regime overhaul and the formal sector recognition demand, both of which have been pending for several years.