In October 2025, the Ministry of Mines (MoM) issued detailed guidelines for the ‘Rs 1,500 crore Critical Mineral Recycling Incentive Scheme’ for the promotion of Critical Mineral Recycling, following the approval of the Union Cabinet chaired by the Prime Minister (PM) Narendra Modi in September 2025.
Exam Hints:
- What? Guidelines issued for the Rs 1,500 crore Critical Mineral Recycling Incentive Scheme
- By Whom? MoM
- Objective: Develop domestic recycling capacity, enhance innovation, support startups, reduce import dependence, and promote circular economy
- Eligible Feedstock: E-waste, spent LiB, industrial scrap
- Beneficiaries: Large recyclers, small recyclers, and startups
- Application Window: October 4, 2025 to April 1, 2026 (6 months)
- Scheme Duration: FY 2025-26 to FY 2030-31 (6 years)
- Outlay Allocation: Rs.1,485 crore: LiB recycling-Rs.700 crore; e-waste-Rs.650 crore; other waste streams – Rs.135 crore.
About Guidelines:
Overview: The guidelines outline the scheme’s modalities, including methodology for incentive allocation, procedures for application and evaluation, as well as mechanisms for institutional oversight and performance review.
Application: The scheme is open for applications from 2 October 2025 to 1 April 2026.
About Incentive Scheme for promotion of Critical Mineral Recycling:
Aim: To develop India’s recycling capacity for the separation and production of critical minerals from secondary sources, as part of the National Critical Mineral Mission(NCMM)
Scheme Duration: Financial Year2025-26(FY 26) to FY31 (6 years).
Implemented By: Ministry of Mines (MoM)
Eligible Feedstock: Electronic waste (e-waste), spent Lithium-ion Batteries (LiB), and other scrap material.
Scope: Applicable to investments in new units as well as expansion, modernization, and diversification of existing units.
Focus: Incentives are for the value chain involved in the actual extraction of critical minerals, not just for producing black mass.
Eligibility and Incentives:
Beneficiaries: As per the guidelines, the scheme is designed for large, established recyclers as well as small or new recyclers, including startups, involved in extracting critical minerals from secondary sources.
Group A (Large Recyclers):
- Revenue: Over Rs 200 crore
- Minimum investment: Rs 100 crore
- Facility capacity: 10,000 tonnes/year
- Incentive allocation: Up to Rs 990 crore
Group B (Small Recyclers & Start-ups):
- Revenue: Below Rs 200 crore
- Minimum investment: Rs 25 crore
- Facility capacity: 5,000 tonnes/year
- Incentive allocation: Up to Rs 495 crore
Outlay Allocation:
- Total Outlay: Rs 1,485 crore
- Lithium-ion Battery Recycling: Rs 700 crore.
- e-waste: Rs 650 crore.
- Other waste streams: Rs 135 crore.
Incentives: The scheme provides incentives as capital expenditure (Capex) subsidies of 14–20% and operational expenditure (Opex) support tied to incremental sales, with defined sales targets applicable to both groups.
- Sales Targets: Group A: Rs.60 crore (Year 2), Rs.150 crore (Year 5); Group B: Rs 30 crore (Year 2), Rs 75 crore (Year 5).
About Ministry of Mines (MoM):
Union Minister- Gangapuram (G.) Kishan Reddy (Constituency- Secunderabad, Telangana)
Minister of State (MoS)– Satish Chandra Dubey (Rajya Sabha – Bihar)
