New Delhi: The Government of India has unveiled a ₹1,500 crore incentive scheme under the National Critical Minerals Mission to promote domestic recycling of critical minerals. The initiative aims to reduce dependence on imports and strengthen supply chains for essential minerals such as lithium, cobalt, nickel, rare earth elements, and platinum group metals.
Scheme Details
The scheme targets two categories of recyclers:
- Group A: Established companies with annual revenues of ₹200 crore or more. They must invest at least ₹100 crore and establish recycling facilities with a capacity of 10,000 tonnes per year.
- Group B: Smaller recyclers and startups with revenues below ₹200 crore. They are required to invest at least ₹25 crore and set up facilities with a capacity of 5,000 tonnes per year.
Funding Allocation
- ₹700 crore for lithium-ion battery recycling
- ₹650 crore for e-waste recycling
- ₹135 crore for other waste streams
Incentive Structure
- Capital Expenditure (Capex) Subsidy: 14–20%, depending on project implementation speed post-environmental clearance.
- Operational Expenditure (Opex) Support: Linked to incremental sales, with 40% released in the second year and 60% in the fifth year.
- Sales Targets:
- Group A: ₹60 crore by second year, ₹150 crore by fifth year
- Group B: ₹30 crore by second year, ₹75 crore by fifth year
- Incentive Caps:
- Group A: ₹50 crore
- Group B: ₹25 crore
Objectives
- Enhance Supply Security: Strengthen domestic supply of critical minerals for sectors like electric mobility, clean energy, electronics, and advanced manufacturing.
- Encourage Innovation: Support startups and innovation in recycling technologies.
- Position India as a Recycling Hub: Promote sustainable recycling practices and contribute to a circular economy.
The scheme is part of India’s broader strategy to achieve self-reliance in critical minerals and emerge as a global leader in sustainable resource management.