New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved an incentive scheme of Rs 1,500 crore. The scheme aims to develop recycling capacity for separation and production of critical minerals from secondary sources in the country. This initiative is part of the National Critical Mineral Mission (NCMM), which aims to strengthen domestic production capacity and supply chain.
The Union Ministry of Mines gave this information. The tenure of the scheme will be six years from FY 2025-26 to 2030-31. In this, e-waste, lithium ion battery (LIB) scrap and other scrap (such as catalytic converters of end-of-life vehicles) have been considered eligible feedstock for recycling.
From large established recyclers to small and new startups, this scheme will benefit. One-third of the total budget has been reserved for small and new recyclers. The scheme will be applicable to investments in new units as well as expansion, modernisation and diversification of existing units.
The incentives will include 20% capex subsidy on plant, machinery and equipment and opex subsidy on incremental sales. The maximum limit of total incentives has been fixed at Rs 50 crore for large enterprises and Rs 25 crore for small enterprises.
The government estimates that the scheme will create 270 kilo tonnes of annual recycling capacity, producing about 40 kilo tonnes of critical minerals, attracting investments of about Rs 8,000 crore and creating 70,000 direct and indirect employment opportunities. Several rounds of discussions and consultation sessions were held with industry and other stakeholders before formulating the scheme.
