NEW DELHI: The Ministry of Mines has issued detailed guidelines for the Critical Mineral Recycling Incentive Scheme to recover minerals from waste such as e-waste, spent lithium-ion batteries, permanent magnets, catalytic converters, and alloy scraps. The Rs. 1500 crore scheme, notified on September 8, 2025, under the National Critical Minerals Mission, will help India secure critical minerals like lithium, cobalt, nickel, rare earth elements, and platinum group metals.
As per the guidelines, beneficiaries of the scheme will be recyclers of secondary products that recover these minerals. They are divided into two groups based on their global manufacturing revenue. Group A will include large, established recyclers with revenues of at least Rs 200 crore. They must invest a minimum of Rs 100 crore and set up facilities with a capacity of 10,000 tonnes per year. Group B will cover smaller recyclers and startups with revenues below Rs 200 crore, requiring at least Rs 25 crore investment and 5,000 tonnes capacity.
The scheme has a total outlay of Rs 1,485 crore, of which Rs 700 crore is set aside for lithium-ion battery recycling, Rs 650 crore for e-waste, and Rs 135 crore for other waste streams. Group A will receive up to Rs 990 crore in incentives, while Group B will get Rs 495 crore, with flexibility to reallocate unused funds.
The scheme further mentioned that the incentives will be provided in two forms—capital expenditure (Capex) subsidies and operational expenditure (Opex) support. Capex subsidies will range from 14% to 20% depending on how quickly projects begin production after environmental clearance. Opex incentives will be linked to incremental sales, with 40% released in the second year and 60% in the fifth year. Group A must achieve sales of Rs 60 crore in year two and Rs 150 crore in year five, while Group B must reach Rs 30 crore and Rs 75 crore respectively. Incentives are capped at Rs 50 crore for Group A and Rs 25 crore for Group B.
The purpose of the scheme is to boost India’s supply security of critical minerals, encourage innovation, support startups, and position the country as a hub for sustainable recycling technologies. These minerals are crucial for clean energy, electric mobility, electronics, and advanced manufacturing but are concentrated in a few regions worldwide, posing supply risks. By promoting recycling and recovery from secondary sources, the government aims to reduce import dependence and build a circular economy for high-value materials.