The scheme aims to build domestic capacity for "urban mining" to reduce India's heavy reliance on imported critical minerals (often exceeding 80%). By recycling secondary sources like e-waste and batteries, the government seeks to ensure a resilient supply chain for strategic sectors like defense, space, and clean energy.

This scheme is a key component of the National Critical Mineral Mission (NCMM). It has a total financial outlay of ₹1,500 crore.

The scheme runs for six years, from Financial Year 2025-26 to 2030-31.

Target beneficiaries are recyclers registered in India who recover and extract critical minerals. They are divided into two categories:

Group A: Large entities with Global Manufacturing Revenue (GMR) of ₹200 crore or more.

Group B: Small or new entities (including startups) with GMR below ₹200 crore.

Yes. Authorization by the CPCB (Central Pollution Control Board) or SPCB (State Pollution Control Board) is a mandatory requirement. Additionally, units must have valid registration under relevant Extended Producer Responsibility (EPR) rules.

Eligible feedstock includes e-waste, Lithium-ion Battery (LIB) scrap (such as LFP, NMC, LCO mixes), and other scrap like catalytic converters from end-of-life vehicles.

No. The scheme specifically incentivizes L3 (chemical processing/extraction). It excludes basic collection, dismantling (L1), and mechanical shredding/sorting (L2/R2). The goal is to support the actual extraction of minerals, not just the intermediate production of black mass.

Yes. The produced metals/compounds must generally have a purity of at least 99%. Furthermore, there is a base yield target of 80%, meaning at least 80% of the recoverable material must be successfully extracted.

• Capex Subsidy: A 20% financial incentive on capital expenditure (plant, machinery, and utilities) for starting production within specified timelines. This rate reduces if production is delayed.
• Opex Subsidy: Incentives on incremental sales over the base year (FY 2025-26).

Yes, to ensure a wider number of beneficiaries, the following ceilings apply:
• Group A: Total ceiling of ₹50 crore (with an Opex sub-limit of ₹10 crore).
• Group B: Total ceiling of ₹25 crore (with an Opex sub-limit of ₹5 crore).