Stakeholders appreciate fast roll-out of India's critical mineral recycling incentive scheme

New Delhi, Oct 24 Stakeholders have appreciated the fast roll-out of the Rs 1,500 crore Critical Mineral Recycling Incentive Scheme, the government said on Friday, adding that the application window for the scheme is open.

The scheme aims to enhance industry capacity for recycling critical minerals from e-waste, spent lithium-ion batteries, and other scrap such as catalytic converters in end-of-life vehicles, an official statement said.

The scheme, which is a part of the National Critical Mineral Mission, also aims to provide a prudent way to ensure supply chain sustainability in the near term, the Ministry of Mines said.

The Union Cabinet approved the scheme on September 3, 2025. The Ministry of Mines opened the application process following the release of detailed guidelines on 2 October 2025, and the window to submit applications is open until April 1, 2026.

Annual e-waste generation is estimated at 1.75 million tonnes, while spent lithium-ion batteries total approximately 60 kilotonnes, the statement said. Over next 4-5 years, the availability of these waste products is going to increase manifold, the ministry noted.

The Union Budget 2025-26 eliminated customs duty on LIB scrap, facilitating imports. Feedstock availability is also being addressed through formalisation of collection under the Extended Producer Responsibility (EPR) framework and integration of waste into the recycling ecosystem, supported by concerned government agencies, the ministry said.

The Scheme will provide incentive for the recycling value chain which is involved in actual extraction of critical minerals. This will help bring in more recyclers, especially upstream entities like dismantlers, crushers and shredders, into the formal system, the statement noted.

Incentives for large recyclers are set at Rs 50 crore, while small recyclers will receive up to Rs 25 crore. The scheme will help in augmenting capacity in recycling using processes like hydrometallurgy, the ministry said, highlighting that proven technologies for end-to-end recycling are available in the country.

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