The Ministry of Mines on Saturday said it has issued the guidelines for the INR 1,500 crore incentive scheme to promote critical mineral recycling
NEW DELHI — The Ministry of Mines on Saturday said it has issued the guidelines for the INR 1,500 crore incentive scheme to promote critical mineral recycling, as the country aims to reduce its dependence on other nations in the sector.
The guidelines provide the scheme modalities including indicative outlays for recycling systems, methodology for incentive allocation, application, evaluation and disbursement procedures, institutional mechanism, and performance review, according to an official statement.
The guidelines have been finalised after detailed consultation with industry and other relevant stakeholders, the statement said.
The incentive scheme, which was approved by the Union Cabinet on September 3, 2025, is a key component of the National Critical Mineral Mission, and is aimed at developing the recycling capacity in the country for separation and production of critical minerals from secondary sources.
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Eligible feedstock source is e-waste, spent Lithium-ion Batteries (LiB), and other scrap material. Expected beneficiaries will be both large and established recyclers, and small and new recyclers including start-ups. The scheme will be applicable to investments in new units as well as expansion of capacity/modernisation and diversification of existing units.
The scheme incentives will be meant for the recycling value chain which is into the actual extraction of critical minerals, and not the value chain involved in only black mass production, the statement explained.
With the issue of the detailed guidelines, the scheme is now open for applications effective from October 2, 2025 for a period of six months up to April 1, 2026. The scheme guidelines and the link to apply are available on the Ministry of Mines’ website.
In order to ensure greater number of beneficiaries, total incentive (Capex plus Opex subsidy) per entity will be subject to an overall ceiling of INR 50 crore for large entities and INR 25 crore for small entities, within which there will be a ceiling for Opex subsidy of INR 10 crore and INR 5 crore, respectively.
In terms of key outcomes, the scheme incentives are expected to develop at least 270 kilo tonne of annual recycling capacity resulting in around 40 kilo tonne annual critical mineral production, bringing in about INR 8,000 crore of investment and creating close to 70,000 direct and indirect jobs.