In a landmark move to boost India’s self-reliance in clean-energy resources, the Government of India has approved a ₹1,500 crore incentive scheme to promote the domestic extraction and recycling of critical minerals such as lithium, cobalt, and nickel from e-waste and used battery scrap.
These minerals are essential for electric vehicles (EVs), renewable-energy storage, smartphones, and other high-tech industries. With the global race for securing critical mineral supply chains intensifying, India’s strategy is to turn waste into wealth—by extracting these valuable materials from discarded electronic and battery waste through advanced recycling.
Key Features of the Scheme
- Total Outlay: ₹1,500 crore (FY 2025-26 to FY 2030-31).
- Focus: Recycling of e-waste, spent lithium-ion batteries, and automotive scrap to recover valuable critical minerals.
- Eligible Units: Both new and existing recyclers—including startups, MSMEs, and large industries.
- Objective: To build domestic capacity in mineral extraction, reduce import dependence, and generate green jobs.
Incentive Structure
- Capital Subsidy: Up to 20% of capital expenditure on plant and equipment for eligible recyclers.
- Operational Subsidy: Linked to incremental sales achieved over the base year.
- Caps: ₹50 crore per large entity; ₹25 crore for small/new recyclers.
- Target Output: Around 40,000 tonnes of refined critical minerals per year from recycled sources.
- Employment Potential: Over 70,000 direct and indirect jobs.
- Expected Investment Mobilisation: ₹8,000 crore from public and private sectors.
Challenges Ahead
- Establishing efficient collection networks for e-waste and battery scrap.
- Developing cost-effective, environment-safe extraction technologies.
- Ensuring coordination between central, state, and private agencies.
- Maintaining global competitiveness and avoiding export of low-value scrap.
Conclusion
The ₹1,500 crore Critical Mineral Recycling Incentive Scheme marks a turning point in India’s green industrial policy. It connects environmental responsibility with economic opportunity—creating a sustainable supply chain for the country’s future in electric mobility, renewable energy, and advanced electronics.
By turning waste into wealth, this initiative will not only reduce India’s import dependence but also make it a global hub for green manufacturing and circular-economy innovation.
FAQs
1. What is the aim of the ₹1,500 crore incentive scheme?
Ans: To promote large-scale domestic recycling and extraction of critical minerals from e-waste, battery scrap, and industrial waste, reducing import dependence.
2. Which materials are covered under this scheme?
Ans: Key minerals include lithium, cobalt, nickel, copper, and rare-earth elements recovered from electronic and battery waste.
3. Who can apply for the incentive?
Ans: Both new and existing recycling companies, including startups and MSMEs, engaged in processing, refining, or mineral extraction.
4. How much support will eligible companies get?
Ans: Up to 20% capital subsidy and operational incentives based on incremental production or sales.
5. How does this scheme benefit India’s clean-energy goals?
Ans: It ensures a domestic supply chain for EV batteries, solar panels, and electronics, strengthening India’s green-energy transition.
My self Anita Sahani. I have completed my B.Com from Purbanchal College Silapathar. I am working in Dev Library as a Content Manager. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Health, Finance, Biography, Quotes, Study Materials, and more.
