The Union Cabinet on Wednesday approved a Rs 1,500 crore incentive scheme to promote recycling of e-waste and battery waste for extracting critical minerals in India.

The scheme, part of the National Critical Mineral Mission (NCMM), aims to strengthen domestic capacity and build a resilient supply chain for critical minerals, which are vital for sectors such as clean energy, electronics, and electric mobility.

Explaining the need for the initiative, the government noted that mining and operationalising new mineral assets takes time. Recycling from secondary sources such as e-waste, lithium-ion battery scrap, and catalytic converters in old vehicles offers a quicker way to meet immediate demand.

The scheme will run for six years till 2031. It will cover both new units and expansion or modernisation of existing ones. One-third of the outlay is earmarked for start-ups and smaller recyclers.

Incentives include a 20% capital subsidy on plant and machinery for units that start production within a set timeframe, and operational subsidies linked to sales growth. However, the total incentive per entity will be capped at Rs 50 crore for large companies and Rs 25 crore for smaller ones.

The government expects the scheme to help develop at least 270 kilotons of annual recycling capacity, yielding about 40 kilotons of critical minerals every year. It is also projected to attract nearly Rs 8,000 crore in investments and create around 70,000 direct and indirect jobs.

Officials said extensive consultations with industry players and stakeholders were held before finalising the scheme.

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