Critical Mineral Recycling Scheme: 58 Firms Approved Under NCMM
Why in the news
The Ministry of Mines cleared 58 companies to take part in a recycling incentive scheme under the National Critical Mineral Mission (NCMM). India imports over 80% of key critical minerals such as lithium, cobalt and nickel, which feed clean energy, defence, semiconductors and advanced manufacturing.
Key facts
- Scheme: Incentive Scheme for Promotion of Critical Mineral Recycling, part of NCMM.
- Notified: 2 October 2025; valid for six years, FY 2025-26 to FY 2030-31.
- Outlay: ₹1,500 crore.
- Targets: e-waste, spent lithium-ion batteries, permanent magnets and catalytic converters.
- Eligible: registered Indian recyclers, for both greenfield and brownfield projects.
- Hybrid option: Capex and Opex support can be combined within ceilings.
Incentive design
| Element | Detail |
|---|---|
| Capex subsidy | 20% if on time; 17% or 14% if delayed |
| Opex subsidy | 40% in Year 2 and 60% in Year 5, tied to extra sales over the FY 2025-26 base |
| Group A | Global manufacturing revenue of ₹200 crore or more; ceiling ₹50 crore |
| Group B | Revenue below ₹200 crore; ceiling ₹25 crore |
Background
- Critical minerals are economically vital but face supply risk because reserves and processing sit in a few countries. Examples include lithium, cobalt, nickel, copper, rare earths, graphite, vanadium and silicon.
- In June 2023 the Ministry of Mines issued a list of 30 critical minerals for India.
- NCMM aims at long-term supply through domestic exploration, mining, refining, recycling and overseas acquisition.
- Urban mining means recovering metals from used products and waste instead of primary deposits.
- KABIL (Khanij Bidesh India Ltd.) was set up in 2019 by NALCO, HCL and MECL to acquire mineral assets abroad.
- The Minerals Security Partnership is a US-led grouping, including India, for stronger mineral supply chains.
Significance
- Strengthens critical mineral security and lowers import dependence.
- Builds a circular economy in minerals, where materials are reused and recycled.
Exam angle
- Nodal ministry: Ministry of Mines.
- Outlay and tenure: ₹1,500 crore over six years.
- Related terms: greenfield vs brownfield, urban mining, KABIL, MSP.