The Union Cabinet has approved a ₹1,500 crore incentive scheme under the National Critical Mineral Mission (NCMM) to encourage large-scale recycling of e-waste and lithium-ion battery waste in India. The scheme is designed to extract vital critical minerals from secondary sources, strengthening domestic supply chains and reducing dependence on imports. Critical minerals are essential for clean energy technologies, consumer electronics, and the fast-growing electric mobility sector.
According to the government, developing new mining projects is a lengthy process, whereas recycling offers a faster and more sustainable route to meet immediate mineral requirements. By focusing on e-waste, discarded lithium-ion batteries, and catalytic converters from old vehicles, the mission seeks to create a quicker, circular flow of essential resources.
The scheme will operate for six years, until 2031, and will support both greenfield recycling plants and the expansion or modernisation of existing facilities. To promote wider participation, one-third of the total outlay has been earmarked for start-ups and smaller recyclers. Incentives include a 20% capital subsidy on plant and machinery for units that begin operations within the stipulated timeframe, along with operational subsidies tied to sales growth. However, incentives will be capped — up to ₹50 crore for large companies and ₹25 crore for smaller enterprises.
Through this initiative, the government expects to build an annual recycling capacity of around 270 kilotons, which could yield nearly 40 kilotons of critical minerals each year. The scheme is also projected to attract close to ₹8,000 crore in private investment while generating about 70,000 direct and indirect jobs across the recycling ecosystem.
Officials said the framework was finalised after detailed consultations with industry representatives, recyclers, and other stakeholders to ensure feasibility and effective implementation.
