Critical Mineral Recycling Incentive Scheme

The Ministry of Mines has issued guidelines for implementing the ₹1,500 crore Critical Mineral Recycling Incentive Scheme (CMRIS) under the National Critical Minerals Mission (NCMM).

About Critical Mineral Recycling Incentive Scheme (CMRIS)

Critical Mineral Recycling Incentive Scheme (CMRIS) is a central sector scheme under the National Critical Minerals Mission (NCMM) to promote recycling of critical minerals from secondary sources (e.g., e-waste, spent lithium-ion batteries, etc).
Nodal Agency: Ministry of Mines.
Objective: To establish a secondary domestic supply chain for critical minerals, thereby reducing India’s dependence on imports.
Output Target: An annual recycling capacity of 270 kilotons, along with 40 kilotons of recovered critical minerals each year by FY 2031.
Tenure: Six financial years (FY 2025–26 to FY 2030–31), with a total outlay of ₹1,500 crore.
Incentive Structure: Incentives are provided on a reimbursement basis for both capital expenditure (Capex) and operational expenditure (Opex) components.
Coverage Focus: Covers all stages of recycling, from collection and processing to extraction and purification, ensuring full and transparent mineral recovery.
Feedstock Sources: E-waste, spent lithium-ion batteries, catalytic converters, and other secondary metal waste.
Process Eligibility: The scheme is open to entities engaged in the extraction, separation, and purification of critical minerals; Those engaged solely in black-mass production are excluded.
- It applies to both new investments and the expansion, modernisation, or diversification of existing recycling operations.

Beneficiary Group A: Large recyclers with annual revenues above ₹200 crore, investing at least ₹100 crore, and maintaining 10,000-tonne capacity.
Beneficiary Group B: Smaller recyclers and startups with revenues under ₹200 crore, investing at least ₹25 crore, and maintaining 5,000-tonne capacity.

Incentive Caps: Financial assistance is capped at ₹50 crore for Group A entities and ₹25 crore for Group B entities, covering both capital expenditure (Capex) and operating expenditure (Opex).
Outlay Reservation: One-third of the total ₹1,500 crore outlay is reserved exclusively for Group B startups and smaller recyclers.

Aimed at Innovation: Promote research in advanced mineral processing & cutting-edge technologies for mineral processing and recovery, and establish Centres of Excellence.
Comprehensive Mineral Value Chain: Encourages both public & private investment in global mining projects encompassing exploration, mining, beneficiation, processing & recycling of critical minerals.
Financial Support: ₹16,300 cr. from the government for exploration and recovery of minerals through subsidies and grants & ₹18,000 cr. expected investment from PSUs & private companies.
Infrastructure Development: Establishment of mineral processing parks and promotion of critical mineral recycling.
Stockpile Strategy: Plans to build a national reserve of critical minerals to ensure long-term supply security.
Faster Regulatory Approvals for critical mineral mining projects to ensure smooth operations.
Self-Reliance in Critical Minerals: Reduce dependence on imports by enhancing domestic production and acquiring foreign assets.

Lithium & Cobalt: Essential for electric vehicle (EV) batteries and electronics.
Graphite & Nickel: Used in battery storage and alloys.
Rare Earth Elements (REEs): Key for high-tech manufacturing and defense applications.
Titanium & Tungsten: Critical for aerospace and industrial applications.
Vanadium & Molybdenum: Used in steel production and energy storage solutions.

Mines and Minerals (Development and Regulation) Act, 1957: The 2023 amendments enhance exploration and mining of critical minerals.
Geological Survey of India (GSI): Conducting large-scale exploration projects for critical minerals, with 368 projects ongoing.
S&T PRISM Program: Encourages start-ups and MSMEs in mineral research and commercialization.
KABIL’s Foreign Acquisitions: KABIL, a JV of the Ministry of Mines, has secured mining rights in Argentina for Lithium.

A critical mineral is a metallic or non-metallic element crucial for modern technologies, economies, and national security, with the potential risk of disruptions to its supply chains. It includes both primary and processed minerals.
A mineral is critical when the risk of supply shortage and associated economic impact is (relatively) higher than other raw materials.

Critical Minerals

Countries create their own critical minerals list based on strategic needs.
These are minerals that are essential for economic development and national security.
The lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations can lead to “supply chain vulnerabilities and even disruption of supplies”.

The government has unveiled the country’s first report on “Critical Minerals for India” and has identified 30 critical minerals, including nickel, titanium, vanadium, tungsten, etc.
The identification of the critical minerals is a part of multiple strategic value chains, which include:
- Clean technologies initiatives (such as zero-emission vehicles, wind turbines, and solar panels);
- Information and communication technologies (including semiconductors);
- Advanced manufacturing inputs and materials (defence applications, permanent magnets, & ceramics).
The minerals were identified based on a report by an Expert Committee of the Ministry of Mines.