Guidelines issued for critical mineral recycling incentive scheme

The Union Ministry of Mines has released detailed guidelines for the Rs 1,500 crore ‘Critical Mineral Recycling Incentive Scheme’ to promote recovery of valuable minerals from secondary sources. These secondary sources include e-waste, spent lithium-ion batteries, catalytic converters, permanent magnet, alloy scraps etc.
The scheme was notified earlier on September 8, 2025, under the National Critical Minerals Mission, and it aims to strengthen India’s access to critical resources like lithium, cobalt, nickel, rare earth elements and platinum group metals.

The guidelines say that beneficiaries will include recyclers engaged in mineral recovery from waste materials. They are classified into two groups based on global manufacturing revenue. Group A consists of large recyclers with revenues above Rs 200 crore, required to invest at least Rs 100 crore and establish facilities with 10,000 tonnes per year capacity.

Group B covers smaller firms and startups with revenues below Rs 200 crore, needing a minimum investment of Rs 25 crore and a 5,000-tonne annual capacity.

Of the total Rs 1,485 crore outlay, Rs 700 crore is allocated for lithium-ion battery recycling, Rs 650 crore for e-waste, and Rs 135 crore for other waste streams. Group A recyclers will receive up to Rs 990 crore in incentives, while Group B will get Rs 495 crore, with flexibility to reallocate unutilized funds between categories.

The incentive package includes capital expenditure (Capex) subsidies ranging from 14% to 20%, depending on how quickly projects begin production after obtaining environmental clearance. Operational expenditure (Opex) support will be tied to incremental sales — 40% disbursed in the second year and 60% in the fifth. Group A must achieve sales of Rs 60 crore and Rs 150 crore in years two and five respectively, while Group B must reach Rs 30 crore and Rs 75 crore. Incentives are capped at Rs 50 crore for Group A and Rs 25 crore for Group B.

The scheme seeks to enhance supply security, foster innovation, support startups, and make India a global hub for sustainable recycling technologies — a key step toward reducing import dependence and establishing a circular economy for high-value critical minerals.