Incentive Scheme to Promote Critical Mineral Recycling

Incentive Scheme for Promotion of Critical Mineral Recycling Latest News

Recently, the Ministry of Mines has approved 58 companies under the Incentive Scheme for Promotion of Critical Mineral Recycling as eligible for participation. 

About Incentive Scheme for Promotion of Critical Mineral Recycling

• It 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. 
• Time Period: The Scheme will have a tenure of six years from Financial Year 2025-26 to Financial Year 2030-31. 

‹ ›

Features of Incentive Scheme for Promotion of Critical Mineral Recycling

• Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste and LIB scraps. 
• 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. 
• It is applicable to investments in new units as well as expansion of capacity and modernization and diversification of existing units. 
• It provides 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 include a 20% capital subsidy on plant and machinery for projects that commence production within the stipulated timeframe and an operational subsidy tied to incremental sales. 
• The operational support will be provided in tranches—40% in the second year and 60% in the fifth year—on meeting specific sales thresholds.
• To ensure wider participation, the total incentive has been capped at ₹50 crore per large entity and ₹25 crore per small entity, with limits on operating subsidies of ₹10 crore and ₹5 crore, respectively..

Source: News On Air