New Delhi: The Ministry of Mines has released detailed guidelines for the ₹1,500 crore Critical Mineral Recycling Incentive Scheme following its approval by the Union Cabinet on September 3, 2025. This ambitious scheme aims to strengthen India’s recycling capacity of critical minerals and support sustainable development goals.
Objective of the Incentive Scheme
The scheme forms a vital part of the National Critical Mineral Mission and is designed to promote the extraction and recycling of critical minerals from secondary sources such as e-waste, spent lithium-ion batteries (LiB), and other scrap materials. Both established recyclers and emerging players, including startups, are eligible to benefit from the scheme.
Scheme Modalities and Eligibility
The guidelines provide a comprehensive framework detailing the scheme’s modalities, including indicative financial outlays for recycling systems, methodology for incentive allocation, application process, evaluation and disbursement procedures, institutional mechanisms, and performance reviews. Investments in new recycling units, expansion, modernization, and diversification of existing units are eligible for incentives. It is important to note that incentives are targeted only at the recycling value chain involved in the actual extraction of critical minerals and not limited to black mass production.
Application Process and Timeline
Following the issuance of the guidelines on October 2, 2025, the application window for the scheme officially opened and will remain available for six months until April 1, 2026. Interested applicants can find the scheme guidelines and apply through the Ministry of Mines’ official website.
Significance and Future Outlook
This incentive scheme is a significant step toward bolstering India’s self-reliance in critical mineral resources, aligning with the government’s vision for sustainable growth and technological innovation. It is expected to create a robust ecosystem for mineral recycling and contribute significantly to the country’s green economy.
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