New Delhi | October 4,2025 | Sky Link Times
The Ministry of Mines has officially released the guidelines for the ₹1,500 crore incentive aimed at promoting critical mineral recycling scheme in India. The move is a major step towards strengthening domestic supply chains and reducing the country’s dependence on imports of strategic minerals essential for clean energy, electronics, and advanced manufacturing.
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Critical Mineral Recycling Scheme Aims to Boost Recycling and Reduce Import Reliance
The Critical Mineral Recycling Scheme, approved by the Union Cabinet on September 3, 2025, forms a key part of India’s National Critical Mineral Mission. The scheme’s objective is to build large-scale recycling capacity to recover valuable minerals like lithium, cobalt, and nickel from secondary sources such as e-waste, spent lithium-ion batteries, and scrap materials.
According to the Ministry’s official statement, the newly issued guidelines define the methodology for incentive allocation, application and evaluation processes, and institutional mechanisms for implementation.
Open for Applications Till April 2026
The scheme officially opened for applications on October 2, 2025, and will remain open for six months, closing on April 1, 2026. Interested entities can access the scheme guidelines and application link on the Ministry of Mines website.
Eligible applicants include both large and small recyclers, as well as start-ups and new entrants. Incentives will apply to new projects, as well as to expansion, modernization, and diversification of existing facilities.
To ensure wider participation, the government has capped incentives per entity:
1.Large entities: ₹50 crore (including ₹10 crore Opex subsidy)
2.Small entities: ₹25 crore (including ₹5 crore Opex subsidy)
The scheme’s benefits will cover only those involved in the actual extraction of critical minerals, excluding those limited to black mass production.
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Massive Economic & Environmental Potential
The Ministry projects that the incentive scheme will help develop 270 kilotonnes of annual recycling capacity, generating around 40 kilotonnes of critical mineral output annually. This is expected to attract ₹8,000 crore in total investment and create approximately 70,000 direct and indirect jobs across the recycling ecosystem.
Officials added that the scheme was formulated after extensive consultations with industry leaders and stakeholders to ensure transparency, accountability, and alignment with India’s clean energy goals.
A Step Toward Sustainable Mineral Security
With global demand for critical minerals soaring—driven by electric vehicles, renewable energy storage, and electronics manufacturing—India’s new incentive scheme positions it as a future-ready hub for circular economy initiatives.
The move aligns with the government’s larger ambition to achieve self-reliance in mineral supply, while promoting green growth and responsible resource utilization.
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