Scheme for Promotion of Critical Mineral Recycling
Scheme for Promotion of Critical Mineral Recycling
Context
In October 2025, the Ministry of Mines approved 58 companies as eligible participants under the Incentive Scheme for Promotion of Critical Mineral Recycling. This initiative operates under the National Critical Mineral Mission (NCMM) to foster a circular economy and enhance India's mineral security.
About the News
- Definition: A dedicated financial intervention designed to subsidize the extraction and refining of critical minerals from secondary sources (e-waste, spent batteries, and industrial scrap).
- Notification Date: October 2, 2025.
- Operational Tenure: 6 years (FY 2025–26 to FY 2030–31).
- Governing Ministry: Ministry of Mines, Government of India.
Objectives
- Mineral Security: Strengthening domestic recycling and refining capacity to ensure a steady supply of essential raw materials.
- Import Substitution: Reducing heavy dependence (often >80%) on imports for minerals like lithium, cobalt, and nickel.
- Sector Support: Bolstering industries critical to clean energy, defense, and advanced manufacturing.
Key Features of the Scheme
Financial Outlay: Total budget of тВ╣1,500 crore.
Incentive Structure:
- Capex Subsidy: 20% subsidy on eligible capital expenditure for timely project commencement. (Reduced to 17% or 14% for delays).
- Opex Subsidy: Linked to incremental sales over the base year (FY 2025-26), disbursed in stages (40% in Year 2; 60% in Year 5).
- Hybrid Option: Allows beneficiaries to combine Capex and Opex support within set ceilings.
Beneficiary Categories:
- Group A (Large Entities): Global Manufacturing Revenue (GMR) ≥ тВ╣200 crore (Ceiling: тВ╣50 crore).
- Group B (SME Entities): GMR < тВ╣200 crore (Ceiling: тВ╣25 crore).
Targeted Streams & Eligibility:
- Urban Mining: Focus on e-waste, spent Lithium-ion batteries (LIB), permanent magnets, and catalytic converters.
- Scope: Open to registered Indian recyclers for both Greenfield (new) and Brownfield (modernization) projects.
Significance
- Supply Chain Resilience: Mitigates vulnerability to global disruptions caused by the geographical concentration of mining (e.g., China).
- Economic Impact: Helps curb the annual foreign exchange outflow of over тВ╣80,000 crore spent on mineral imports.
- Environmental Sustainability: Promotes "Urban Mining," reducing the environmental footprint associated with traditional primary mining.
Challenges
- Collection Infrastructure: Efficiently aggregating e-waste and spent batteries from unorganized sectors remains a logistical hurdle.
- Technological Gap: High-purity extraction from complex waste streams requires advanced, often expensive, proprietary technology.
- Market Fluctuations: Volatility in global virgin mineral prices can affect the price competitiveness of recycled minerals.
Way Forward
- R&D Investment: Encouraging partnerships between industry and academia to develop low-cost, high-yield recycling technologies.
- Policy Integration: Aligning the scheme with Extended Producer Responsibility (EPR) norms to ensure a steady feedstock of waste.
- Global Standards: Adopting international quality benchmarks for recycled minerals to encourage wider industrial adoption.
Conclusion
The Incentive Scheme for Promotion of Critical Mineral Recycling is a strategic step toward Atmanirbhar Bharat in the minerals sector. By incentivizing urban mining, India can secure its technological future while promoting sustainable industrial growth and reducing economic vulnerability.