Union Cabinet Approves ₹1,500 Crore Incentive Scheme to Boost Recycling of Critical Minerals Under NCMM.
Goverment Scheme
In September 2025, the Union Cabinet chaired by Prime Minister Narendra Modi approved a ₹1,500 crore incentive scheme aimed at enhancing India’s recycling capacity for extracting and producing critical minerals from secondary sources.
- This initiative, launched under the National Critical Mineral Mission (NCMM), focuses on strengthening domestic capacity, sustainability, and supply chain resilience.
- The newly approved scheme will be implemented for a period of six years, starting from the Financial Year 2025-26 (FY26) to FY31. This long-term structure ensures sustained support for recycling industries, aligning with India’s goals for self-reliance in critical mineral supply and a circular economy.
- The scope of eligible feedstock under the scheme includes electronic waste (e-waste), Lithium-ion Battery (LIB) scrap, and other high-value categories such as catalytic converters from end-of-life vehicles. These materials are rich in critical minerals like lithium, cobalt, nickel, and rare earth elements, essential for clean energy and digital technologies.
Main Point :- (i) The beneficiaries of this scheme will include both established recyclers and new entrants, with a special emphasis on start-ups working in the recycling and mineral extraction ecosystem. By encouraging participation from diverse players, the scheme aims to boost innovation and expand the recycling industry.
(ii) To ensure inclusivity, one-third (33.33%) of the total budget outlay has been earmarked for smaller entities. This provision guarantees that small-scale recyclers and emerging enterprises can equally benefit, thereby creating a balanced and competitive recycling sector in India.
(iii) This incentive scheme under the NCMM reflects India’s strategic focus on sustainable resource utilization and reducing dependency on imported critical minerals, which are vital for sectors like renewable energy, electronics, and electric mobility.
____________________________
