What is the New Rs 1,500 Crore Mineral Recycling Scheme?
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Synopsis
The Indian government has launched an ambitious Rs 1,500 crore incentive scheme to boost critical mineral recycling, seeking to enhance domestic capabilities and create jobs. With a focus on e-waste and lithium-ion batteries, this initiative promises significant investments and job creation while fostering sustainability.
Key Takeaways
- Rs 1,500 crore incentive scheme launched.
- Focus on recycling critical minerals from e-waste.
- Open for applications until April 1, 2026.
- Targets creating 70,000 jobs.
- Investment potential of Rs 8,000 crore.
New Delhi, Oct 4 (NationPress) The Ministry of Mines announced on Saturday the release of guidelines for the Rs 1,500 crore incentive scheme aimed at enhancing critical mineral recycling. This initiative is vital for reducing the nation's reliance on foreign sources in this sector.
According to an official statement, the guidelines outline the scheme's structure, including estimated budgets for recycling systems, methods for incentive distribution, application procedures, assessment protocols, and a performance review framework.
These guidelines were developed after extensive discussions with industry players and other stakeholders, the statement confirmed.
Approved by the Union Cabinet on September 3, 2025, this incentive scheme is a fundamental aspect of the National Critical Mineral Mission, aimed at bolstering the country's capacity to recycle and produce critical minerals from secondary sources.
Eligible feedstock includes e-waste, spent Lithium-ion Batteries (LiB), and various scrap materials. The scheme targets both large established recyclers and emerging small recyclers, including startups. It covers investments in new facilities as well as the expansion and modernization of existing operations.
The incentives will support the entire recycling value chain that involves the actual extraction of critical minerals, rather than just the production of black mass, as clarified in the statement.
With the release of these comprehensive guidelines, the scheme is now open for applications starting October 2, 2025, and will remain open for six months until April 1, 2026. The scheme guidelines and application link can be found on the Ministry of Mines website.
To maximize the number of beneficiaries, the total incentive (Capex plus Opex subsidy) per entity will have a cap of Rs 50 crore for large entities and Rs 25 crore for small entities, with Opex subsidy limits set at Rs 10 crore and Rs 5 crore, respectively.
In terms of anticipated results, the scheme is projected to create at least 270 kilo tonnes of annual recycling capacity, leading to around 40 kilo tonnes of annual critical mineral production, attracting approximately Rs 8,000 crore in investments, and generating nearly 70,000 direct and indirect jobs.
Point of View
The launch of the Rs 1,500 crore recycling incentive scheme is a strategic move towards enhancing self-sufficiency in critical minerals. By engaging both established and new players in the recycling sector, the government is not only addressing environmental concerns but also ensuring economic growth and job creation.
NationPress
04/10/2025
Frequently Asked Questions
What is the purpose of the Rs 1,500 crore incentive scheme?
The scheme aims to enhance critical mineral recycling in India, reducing dependence on foreign sources and promoting domestic capabilities.
Who is eligible for the scheme?
Both large established recyclers and small new recyclers, including startups, are eligible to apply.
What kind of materials can be recycled under this scheme?
Eligible materials include e-waste, spent Lithium-ion Batteries, and other scrap materials.
When can applications be submitted?
Applications can be submitted from October 2, 2025, until April 1, 2026.
What are the expected outcomes of the scheme?
The scheme is expected to develop significant recycling capacity, generate investments, and create numerous jobs.
