₹1,500 crore scheme for critical mineral recycling
Asked by UPSCPrelims 20261 PYQ
UPSC has already asked about this. Read the story with these questions in mind.
What happened
- The Cabinet approved a ₹1,500 crore incentive scheme, part of the National Critical Mineral Mission, to extract critical minerals from e-waste, lithium-ion battery scrap and other scrap such as catalytic converters [PIB].
- It runs FY 2025-26 to FY 2030-31, offers 20% capex subsidy plus opex subsidy, with caps of ₹50 crore (large) and ₹25 crore (small) per entity; one-third of outlay is for new recyclers [PIB].
- Expected outcome: 270 kilo tonnes of recycling capacity, about 40 kt critical mineral output, ₹8,000 crore investment and nearly 70,000 jobs [PIB].
Background
- Only units doing actual extraction qualify, not those making only black mass [PIB].
Why it matters
- Mines take years; recycling gives quicker supply and cuts import dependence.
How to use this in Mains
- As per PIB (2025-09-03): the Cabinet approved a ₹1,500 crore incentive scheme, part of the National Critical Mineral Mission, to extract critical minerals from e-waste, lithium-ion battery scrap and other scrap such as catalytic converters.
- Mines take years; recycling gives quicker supply and cuts import dependence.
Quotable data pointIt runs FY 2025-26 to FY 2030-31, offers 20% capex subsidy plus opex subsidy, with caps of ₹50 crore (large) and ₹25 crore (small) per entity; one-third of outlay is for new recyclers.
PIB: Cabinet: critical mineral recycling scheme, 3 Sep 2025
Exam angle
UPSC
Prelims: NCMM, recycling scheme. · Mains: critical minerals security.
Practice MCQs
Original practice questions (not PYQs).
Practice · UPSC
Outlay of the critical mineral recycling scheme
Answer (b) & explanation
PIB.
Practice · UPSC
Which activity is NOT incentivised?
Answer (b) & explanation
PIB.
Practice · UPSC
Capex subsidy rate
Answer (b) & explanation
PIB.
Go deeper
ExplainerCritical Minerals and the National Critical Mineral Mission: India’s List of 30, Rare Earths, Lithium, MMDR Amendment 2023, KABIL, Global Partnerships and Challenges (UPSC Notes + PYQs)ExplainerSemiconductors and India: What Chips Are, the Global Value Chain, India Semiconductor Mission, New Fabs and Packaging Units, Challenges and the Way Ahead (UPSC Notes + PYQs)
Official source: PIB: Cabinet: critical mineral recycling scheme, 3 Sep 2025
facts from cited sources only; faculty review pending