Modi Govt's New Push: Rs 1,500 Cr Scheme For Critical Minerals, Recycling Capacity Gets Cabinet Nod
The government approved a ₹1,500 crore incentive scheme under the National Critical Mineral Mission to boost domestic recycling of e-waste, batteries, and other scrap for critical mineral extraction.
New Delhi [India], September 3 (ANI): The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a Rs 1,500 crore Incentive Scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources.
This scheme is part of the National Critical Mineral Mission (NCMM), which is aimed at building the domestic capacity of and supply chain resilience in critical minerals.
The critical mineral value chain, comprising exploration, auction and mine operationalisation, and acquisition of foreign assets, has a gestation period before it can supply critical minerals to the Indian industry.
A prudent way to ensure supply chain sustainability in the near term is through the recycling of secondary sources, a Ministry of Mines release said.
The Scheme will have a tenure of six years from FY 2025-26 to FY 2030-31.
Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste and LIB scrap e.g. catalytic convertors in end-of-life vehicles.
Expected beneficiaries will be both large, established recyclers, as well as small, new recyclers (including start-ups), for whom one-third of the scheme outlay has been earmarked.
The Scheme will be applicable to investments in new units as well as expansion of capacity/ modernization and diversification of existing units, the release said.
The Scheme will provide an incentive for the recycling value chain, which is involved in the actual extraction of critical minerals, and not the value chain involved in only black mass production.
The incentives under the Scheme will comprise 20% Capex subsidy on plant and machinery, equipment and associated utilities for starting production within the specified timeframe, beyond which a reduced subsidy will be applicable; and Opex subsidy, which will be an incentive on incremental sales over the base year (FY 2025-26), viz. 40% of the eligible Opex subsidy in the second year and the remaining 60% in the fifth year from FY 2026-27 to FY 2030-31 on achievement of the specified threshold incremental sales.
To ensure a greater number of beneficiaries, the total incentive (Capex plus Opex subsidy) per entity will be subject to an overall ceiling of Rs 50 crore for large entities and Rs 25 crore for small entities, within which there will be a ceiling for Opex subsidy of Rs 10 crore and Rs 5 crore, respectively.
In terms of key outcomes, the Scheme incentives are expected to develop at least 270 kilo ton of annual recycling capacity, resulting in around 40 kilo ton annual critical mineral production, bringing in about Rs . 8,000 crore of investment and creating close to 70,000 direct and indirect jobs.
Several rounds of consultations with industry and other stakeholders have been held through dedicated meetings, seminar sessions before formulating the Scheme, the release said. (ANI)
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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