National Critical Mineral Mission: ₹1,500 Crore Incentive Scheme to Boost Critical Mineral Recycling in India (2025–31)

With a new ₹1,500 crore incentive program (2025–31), India is furthering its National Critical Mineral Mission (NCMM) to encourage recycling of critical minerals. The program’s objectives are to support the transition to clean energy, lessen reliance on imports, and increase supply chain resilience by focusing on e-waste, lithium-ion battery (LIB) scrap, and other end-of-life materials. The project establishes India as a world leader in sustainable mineral management by encouraging innovation, drawing in investment, and creating 70,000 jobs.

Important aspects of the plan

Six years, spanning FY 2025–2026 to FY 2030–2031. E-waste, lithium-ion battery (LIB) scrap, and other materials like catalytic converters from end-of-life automobiles are all considered eligible feedstock.

• New and small recyclers, including start-ups; tiny organizations receive one-third of the investment.
• 20% of plant and machinery capital expenditures (capex) are subsidized to ensure timely production. subsidy for operational expenses (opex) on increased sales: 40% in the 2nd year and 60% in the 5th year (FY 2026-27 to FY 2030-31)
• A total of ₹50 crore for large organizations and ₹25 crore for small entities are the incentive ceilings.

NCMM, or the National Critical Mineral Mission

In order to guarantee India’s vital mineral supply chain, NCMM from FY 2024–2025 to FY 2030–31 will make sure that minerals are available both domestically and internationally.

• All phases of the value chain are covered by the NCMM, including mining, beneficiation, processing, mineral exploration, and recovery from end-of-life goods.

Anticipated Results

It is anticipated that 270 kilotons of recycling capacity will be developed annually, producing 40 kilotons of key minerals, drawing in ₹8,000 crore in investment, and generating 70,000 direct and indirect jobs.

Mains: 

Question: “India’s critical mineral recycling framework reflects the convergence of sustainability, economic growth, and strategic autonomy.” Analyze this statement with reference to the 2025–31 incentive scheme.

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MCQs:

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Question: With reference to the Incentive Scheme under the National Critical Mineral Mission (NCMM), consider the following statements:

1. The scheme has a tenure of six years from FY 2025–26 to FY 2030–31.
2. Eligible feedstock includes only e-waste and lithium-ion battery (LIB) scrap.
3. One-third of the total scheme outlay is earmarked for small recyclers, including start-ups.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Answer: (b)

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