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Key Points

The Indian government has launched a major incentive scheme to boost critical mineral recycling. This Rs 1,500 crore initiative specifically targets recycling from e-waste and spent lithium-ion batteries. Both established companies and new startups can apply for these incentives until April 2026. The scheme aims to significantly reduce India's dependence on imported critical minerals while creating thousands of jobs.

Key Points: India Launches Rs 1500 Crore Critical Mineral Recycling Scheme

  • Rs 1500 crore scheme targets e-waste and spent lithium-ion battery recycling
  • Incentives capped at Rs 50 crore for large entities and Rs 25 crore for small recyclers
  • Expected to create 270 kilo tonne annual recycling capacity and 40 kilo tonne mineral production
  • Scheme part of National Critical Mineral Mission to reduce import dependence
  • Applications open until April 2026 for new units and capacity expansion
2 min read

Govt throws open Rs 1,500 crore critical mineral recycling incentive scheme

Government opens applications for Rs 1500 crore incentive scheme to boost critical mineral recycling from e-waste and batteries, reducing import dependence.

"The scheme is now open for applications effective from October 2, 2025 for a period of six months up to April 1, 2026. - Ministry of Mines"

New Delhi, Oct 4

The Ministry of Mines on Saturday said it has issued the guidelines for the Rs 1,500 crore incentive scheme to promote critical mineral recycling, as the country aims to reduce its dependence on other nations in the sector.

The guidelines provide the scheme modalities including indicative outlays for recycling systems, methodology for incentive allocation, application, evaluation and disbursement procedures, institutional mechanism, and performance review, according to an official statement.

The guidelines have been finalised after detailed consultation with industry and other relevant stakeholders, the statement said.

The incentive scheme, which was approved by the Union Cabinet on September 3, 2025, is a key component of the National Critical Mineral Mission, and is aimed at developing the recycling capacity in the country for separation and production of critical minerals from secondary sources.

Eligible feedstock source is e-waste, spent Lithium-ion Batteries (LiB), and other scrap material. Expected beneficiaries will be both large and established recyclers, and small and new recyclers including start-ups. The scheme will be applicable to investments in new units as well as expansion of capacity/modernisation and diversification of existing units.

The scheme incentives will be meant for the recycling value chain which is into the actual extraction of critical minerals, and not the value chain involved in only black mass production, the statement explained.

With the issue of the detailed guidelines, the scheme is now open for applications effective from October 2, 2025 for a period of six months up to April 1, 2026. The scheme guidelines and the link to apply are available on the Ministry of Mines’ website.

In order to ensure greater number of beneficiaries, total incentive (Capex plus Opex subsidy) per entity will be subject to an overall ceiling of Rs 50 crore for large entities and Rs 25 crore for small entities, within which there will be a ceiling for Opex subsidy of Rs 10 crore and Rs 5 crore, respectively.

In terms of key outcomes, the scheme incentives are expected to develop at least 270 kilo tonne of annual recycling capacity resulting in around 40 kilo tonne annual critical mineral production, bringing in about Rs 8,000 crore of investment and creating close to 70,000 direct and indirect jobs.

- IANS

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Reader Comments

R
Rohit P
Finally some concrete action on critical minerals! India imports almost all of these minerals currently. This scheme will boost our EV and electronics manufacturing ecosystem. Hope the application process is startup-friendly.
A
Arjun K
Good step but implementation is key. We've seen many schemes fail due to bureaucratic hurdles. Hope this one actually reaches the intended beneficiaries - both large companies and small startups. The 6-month application window seems reasonable.
S
Sarah B
The focus on actual mineral extraction rather than just black mass production is smart. This ensures real value addition happens in India. The Rs 50 crore cap for large entities seems adequate to attract serious players.
M
Michael C
While the scheme looks promising, I'm concerned about the monitoring mechanisms. How will the government ensure that the subsidies are used properly and the promised capacity is actually created? We need transparency in the evaluation process.
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Nisha Z
This is excellent for our Atmanirbhar Bharat mission! Recycling e-waste and spent batteries will help us become self-reliant in critical minerals. The inclusion of both capex and opex subsidies shows the government has thought this through properly. 👏

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