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