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Govt Launches Rs 1,500 Cr Mineral Recycling Incentive Scheme

New Delhi

The Ministry of Mines announced the release of guidelines for a Rs 1,500 crore incentive scheme aimed at boosting critical mineral recycling, helping reduce India’s reliance on imports. The guidelines detail the scheme’s structure, including investment outlays, incentive allocation, application and evaluation procedures, institutional framework, and performance reviews.

Finalized after extensive consultations with industry and stakeholders, the scheme was approved by the Union Cabinet on September 3, 2025, as part of the National Critical Mineral Mission. It focuses on developing recycling capacity to extract critical minerals from secondary sources like e-waste, spent lithium-ion batteries, and other scrap materials.

Both large established recyclers and small or new recyclers, including startups, are eligible. The scheme covers investments in new units and expansion, modernization, or diversification of existing units. Incentives target the recycling value chain focused on extracting critical minerals, excluding those involved only in black mass production.

Applications opened on October 2, 2025, and will be accepted for six months until April 1, 2026. Details and application links are available on the Ministry of Mines website. To maximize beneficiaries, incentives are capped at Rs 50 crore for large entities and Rs 25 crore for small entities, with operational subsidy limits of Rs 10 crore and Rs 5 crore, respectively.

Expected outcomes include developing an annual recycling capacity of 270 kilotonnes, producing 40 kilotonnes of critical minerals, attracting Rs 8,000 crore in investments, and generating around 70,000 direct and indirect jobs.

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