Why in news?
In September 2025 the Union Cabinet approved a six‑year incentive scheme worth ₹1,500 crore under the National Critical Mineral Mission to encourage recycling of electronic waste, spent lithium‑ion batteries and catalytic converters. The move aims to secure supplies of minerals vital to the transition to clean energy.
Key features of the scheme
- Eligible materials: Recyclers can process e‑waste, lithium‑ion battery scrap and catalytic converters from end‑of‑life vehicles to recover critical minerals.
- Duration: The scheme runs for six years from 2025–26 to 2030–31.
- Beneficiaries: Both established firms and start‑ups are eligible. One‑third of the outlay is earmarked for small or new recyclers to encourage innovation and entry.
- Incentives: Recyclers receive a 20 per cent subsidy on capital expenditure for plant and machinery. Operating expense subsidies are linked to incremental sales and are disbursed in two stages—40 per cent in the second year and 60 per cent in the fifth year.
- Funding cap: Large units can claim up to ₹50 crore, including ₹10 crore for operating expenses; small units can claim up to ₹25 crore with ₹5 crore for operating expenses.
- Scope: The scheme supports both greenfield projects and the modernisation or expansion of existing recycling facilities.
Objectives and significance
- Supply chain resilience: By recovering materials such as lithium, cobalt and nickel, India hopes to reduce dependence on imported critical minerals needed for batteries, electronics and clean energy technologies.
- Domestic ecosystem: The scheme seeks to build a vibrant recycling industry that can supply raw materials until domestic mining projects start yielding output.
- Investment and jobs: Officials expect the programme to attract around ₹8,000 crore of private investment, create up to 70,000 direct and indirect jobs and generate an annual recycling capacity of 270 kilo‑tonnes.
By combining financial incentives with clear targets, the recycling scheme aims to turn electronic waste into a valuable resource and strengthen India’s clean‑energy supply chains.