New Delhi [India], September 20 (ANI): Provision of both capital expenditure (Capex) and operational expenditure (Opex) subsidies under Rs 1,500 crore incentive scheme for Critical Mineral Recycling will accelerate the establishment of advanced recycling infrastructure, said industry body India Energy Storage Alliance (IESA) while welcoming the Centre’s move.
The industry body said that the scheme is set to transform India’s recycling landscape and boost NCMM by supporting the recovery and reuse of e-waste, lithium-ion battery (LIB) scrap, and end-of-life vehicles.
“Through the provision of both capital expenditure (Capex) and operational expenditure (Opex) subsidies, the initiative aims to empower industry players and accelerate the establishment of advanced recycling infrastructure,” the industry body stated.
Debmalya Sen, President, India Energy Storage Alliance (IESA), said, “This transformative step by the Cabinet highlights a visionary commitment to building a robust circular economy, ensuring resource security, and driving innovation in recycling technologies. IESA is proud to have contributed to the development of this scheme.”
The Union Cabinet, chaired by Prime Minister Narendra Modi, on September 3, approved a Rs 1,500 crore Incentive Scheme to develop recycling capacity in the country for the separation and production of critical minerals from secondary sources.
This scheme is part of the National Critical Mineral Mission (NCMM), which is aimed at building the domestic capacity of and supply chain resilience in critical minerals.
The Scheme will have a tenure of six years from FY 2025-26 to FY 2030-31. Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e-waste & LIB scrap, e.g. catalytic converters in end-of-life vehicles.
Welcoming the move, the industry body further added that beneficiaries of this scheme will include both large-scale recyclers and new players such as start-ups, with a dedicated one-third of the total outlay earmarked for emerging enterprises.
Additionally, by supporting the creation of new recycling units alongside the modernisation and expansion of existing facilities, the initiative aims to foster industry growth and technological advancement, IESA added.
The incentives under the Scheme will comprise a 20 per cent Capex subsidy on plant & machinery, equipment and associated utilities for starting production within the specified timeframe, beyond which a reduced subsidy will be applicable; and Opex subsidy, which will be an incentive on incremental sales over the base year (FY 2025-26), viz., 40 per cent of eligible Opex subsidy in the 2nd year and balance 60 per cent in the 5th year from FY 2026-27 to FY 2030-31 on achievement of specified threshold incremental sales.
To ensure a greater number of beneficiaries, the total incentive (Capex plus Opex subsidy) per entity will be subject to an overall ceiling of Rs 50 crore for large entities and Rs 25 crore for small entities, within which there will be a ceiling for Opex subsidy of Rs 10 crore and Rs 5 crore, respectively.
In terms of key outcomes, the Scheme incentives are expected to develop at least 270 kiloton of annual recycling capacity, resulting in around 40 kiloton of annual critical mineral production, bringing in about Rs 8,000 crore of investment and creating close to 70,000 direct and indirect jobs.
The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings. (ANI)
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