The Ministry of Mines has issued guidelines for a new incentive scheme of Rs 1,500 crore. The scheme encourages the recycling of critical minerals. This follows the approval of the Union Cabinet on September 3, 2025. The detailed guidelines were issued on October 2, 2025.

The scheme’s goal is to establish a robust recycling infrastructure nationwide. It aims to separate and produce critical minerals from secondary sources, such as e-waste, spent lithium-ion batteries, and other scrap materials.

Who Can Benefit?

Both large, established recyclers and small units, including start-ups, are eligible. The scheme covers new investments as well as expansion, modernization and diversification of existing units.

Significantly, incentives are provided for the recycling value chain involved in the actual extraction of minerals. Units engaged solely in black mass production are not eligible.

The guidelines also highlight the application, evaluation, and distribution procedures. An institutional mechanism and performance review process have been incorporated to ensure transparency and efficiency.

Application Process and Timeline

The application window will open on October 2, 2025 and remain open for six months, closing on April 1, 2026. Interested parties can access detailed guiding principle and submit applications through the official website of the Ministry of Mines.

This scheme is a key part of the National Critical Minerals Mission. It is expected to fortify India's self-reliance in critical minerals, minimize dependence on imports, and generate new business opportunities in the recycling sector.

This INR 1,500 crore incentive scheme is a significant step in India's push for sustainable and self-reliant production of critical minerals. Stakeholders are encouraged to apply and contribute to building a robust domestic recycling ecosystem.