Cabinet approves ₹1,500 crore incentive scheme for critical mineral recycling
The Union Cabinet on 3 September 2025 approved a ₹1,500 crore incentive scheme under the National Critical Mineral Mission to build capacity for extracting critical minerals from e-waste, battery scrap and other secondary sources.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi approved a ₹1,500 crore Incentive Scheme on 3 September 2025 to develop recycling capacity for the separation and production of critical minerals from secondary sources. The scheme is part of the National Critical Mineral Mission (NCMM) and runs for six years, from FY 2025-26 to FY 2030-31. Eligible feedstock includes e-waste, lithium-ion battery scrap and other scrap such as catalytic converters from end-of-life vehicles; one-third of the outlay is earmarked for small and new recyclers, including start-ups. Incentives comprise a 20% capex subsidy on plant and machinery and an opex subsidy linked to incremental sales, with a total ceiling of ₹50 crore per large entity and ₹25 crore per small entity. Only the value chain involved in actual extraction of critical minerals is covered, not black mass production alone. The scheme is expected to create at least 270 kilo tonnes of annual recycling capacity, about 40 kilo tonnes of annual critical mineral production, around ₹8,000 crore of investment and close to 70,000 jobs.
Key facts
- Approved
- 3 Sep 2025, Union Cabinet
- Outlay
- ₹1,500 crore; part of National Critical Mineral Mission
- Tenure
- FY 2025-26 to FY 2030-31 (six years)
- Feedstock
- E-waste, Li-ion battery scrap, other scrap e.g. catalytic converters
- Small recyclers
- One-third of outlay earmarked (incl. start-ups)
- Incentives
- 20% capex subsidy + opex subsidy; ceiling ₹50 cr (large) / ₹25 cr (small)
- Expected outcomes
- 270 kt recycling capacity; ~40 kt minerals; ~₹8,000 cr investment; ~70,000 jobs
Practice MCQs 4 questions
What is the outlay of the critical mineral recycling incentive scheme approved by the Union Cabinet on 3 September 2025?
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Correct answer: B — ₹1,500 crore
The Cabinet approved a ₹1,500 crore Incentive Scheme to develop critical mineral recycling capacity.
The critical mineral recycling incentive scheme approved in September 2025 is part of which mission?
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Correct answer: C — National Critical Mineral Mission
The scheme is part of the National Critical Mineral Mission (NCMM), aimed at domestic capacity and supply chain resilience in critical minerals.
What share of the critical mineral recycling scheme's outlay is earmarked for small and new recyclers, including start-ups?
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Correct answer: D — One-third
One-third of the scheme outlay has been earmarked for small, new recyclers including start-ups.
Consider the following statements about the critical mineral recycling incentive scheme approved in September 2025: 1. Units engaged only in black mass production are eligible for incentives. 2. The total incentive per large entity is capped at ₹50 crore. Which of the above is/are correct?
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Correct answer: B — 2 only
The scheme covers only the value chain involved in actual extraction of critical minerals, not black mass production alone, so statement 1 is wrong. Total incentive is capped at ₹50 crore for large entities and ₹25 crore for small ones.