Ministry of Mines Unveils Guidelines for Critical Mineral Recycling Incentive Scheme

ministry-of-mines-uveils-guidelines-for-mineral-recycling-scheme
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Following the Cabinet’s approval of the ₹1,500 crore Incentive Scheme for Promotion of Critical Mineral Recycling, the Ministry of Mines has released detailed Scheme Guidelines for its implementation. The guidelines provide a comprehensive framework to ensure effective and transparent execution of the incentive scheme.

Key Features and Implementation Modalities

The guidelines detail the modalities of the scheme, including:

*Indicative outlays for recycling systems

*Methodology for incentive allocation

*Application and evaluation procedures

*Disbursement mechanisms

*Institutional framework and performance review processes

The final guidelines were formulated after extensive consultations with industry stakeholders and subject-matter experts, ensuring alignment with both industry needs and national priorities.

Strengthening India’s Critical Mineral Recycling Capacity

The scheme is a central component of the National Critical Mineral Mission, aimed at enhancing India’s ability to recycle and produce critical minerals from secondary sources. Eligible feedstock includes:

*E-waste

*Spent Lithium-ion Batteries (LiB)

*Other scrap materials containing critical minerals

By targeting the actual extraction of critical minerals rather than merely producing black mass, the scheme emphasizes activities that add real strategic value to India’s mineral ecosystem.

Supporting Industry Across the Board

The incentive structure is designed to benefit both large, established recyclers and smaller, new entrants, including start-ups. Incentives are applicable for:

*New recycling units

*Expansion, modernization, or diversification of existing facilities

This approach ensures broad-based participation and fosters innovation within the domestic recycling industry.

Application Timeline and Access

Applications for the scheme opened on October 2, 2025, and will remain open for six months until April 1, 2026. Interested parties can access the Scheme Guidelines and submit applications through the Ministry of Mines’ official website.

Strategic Benefits for India

The Ministry highlighted that the scheme is expected to:

*Enhance domestic recycling capacities

*Reduce dependence on imported critical minerals

*Contribute to India’s goal of building a sustainable and self-reliant critical minerals ecosystem

As reported by knnindia.co.in, by providing structured incentives and a clear regulatory framework, the initiative is set to boost the country’s strategic mineral security while promoting green and circular economy principles.