India's Bold Step: Rs 1,500 Crore Boost for Critical Mineral Recycling

The Federation of Indian Chambers of Commerce and Industry (FICCI) President, Harsha Vardhan Agarwal, hailed the government's recent approval for a Rs 1,500 crore Incentive Scheme aimed at promoting critical mineral recycling as a 'landmark step.' Agarwal expressed industry optimism and support for the initiative.

Under the leadership of Prime Minister Narendra Modi, the Union Cabinet gave the green light on September 3 to develop recycling capacities for critical minerals from secondary sources. This effort is a part of the National Critical Mineral Mission (NCMM) and focuses on enhancing domestic capacity and supply chain resilience.

The recycling initiative targets a gestation period in critical mineral supply chains and advocates recycling secondary sources for near-term sustainability. The scheme, set for six years from FY 2025-26 to FY 2030-31, will cover various feedstock and benefit both large recyclers and startups.

To incentivize the recycling sector, the scheme will offer a 20% Capex subsidy on essential equipment and a tiered Opex subsidy for growing sales, aiming to foster greater recycling capabilities. Total entity-specific incentives are capped at differing levels for large and small entities, with significant investment and job creation targets set.

The scheme follows extensive consultations with industry stakeholders. Launched under the National Critical Mineral Mission, it represents a strategic investment in technological development and resource sustainability, supported by both public and private sectors. (ANI)

(With inputs from agencies.)