Written by PPL Newsroom• October 7, 2026• 6:26 am• Policy

India clears 58 firms for critical mineral recycling incentives

The Ministry of Mines says the firms have pledged 850 kilo tonnes a year of recycling capacity and about ₹5,000 crore, under a ₹1,500 crore scheme.

The Ministry of Mines has approved 58 companies as eligible to take part in India’s Incentive Scheme for Promotion of Critical Mineral Recycling, according to an official statement. The firms plan to recover minerals from used lithium-ion batteries, electronic waste and industrial scrap, which could reduce India’s dependence on imports.

The approvals came in two rounds. The Executive Committee cleared 20 entities on 30 March 2026 and another 38 at its meeting on 29 April 2026. The ministry announced the full list of eligible firms on 30 April.

The numbers behind the scheme

The scheme has a total outlay of ₹1,500 crore under the National Critical Mineral Mission. It was notified on 2 October 2025, along with detailed operational guidelines. Applications stayed open for six months, until 1 April 2026.

Together, the 58 firms have pledged recycling capacity of around 850 kilo tonnes per annum and investment of nearly ₹5,000 crore. In everyday terms, 850 kilo tonnes is about 8.5 lakh tonnes of material a year. The pledged investment is more than three times the government’s own outlay, which suggests private money will carry most of the cost.

The firms cover battery recycling, e-waste processing and other waste recovery. The scheme can support both large and small recyclers, including start-ups, whether they build new facilities or expand existing ones. The Jawaharlal Nehru Aluminium Research Development and Design Centre, as Project Management Agency, evaluated the proposals.

What the incentive offers

When the Union Cabinet cleared the scheme, All India Radio reported that the incentive is a 20 per cent capital subsidy on plant, machinery, equipment and associated utilities, for units that start production within a specified timeframe. The scheme runs for six years, to the 2030-31 financial year. The subsidy rewards the recycling stage that actually extracts the minerals, rather than only collection or dismantling.

What happens next

Eligibility is not the same as funding. The next stage is project execution. Capacity development and the start of production will then be considered for financial support. In practice, the pledged 850 kilo tonnes becomes real only as plants are built and begin operating. Progress on that front will be the thing to watch.

What this means for India

The ministry says the scheme is meant to cut import dependence for minerals used in electric vehicles, clean energy and electronics. Recycling gives India a domestic source of these materials from batteries and e-waste that it already generates. Because the 20 per cent subsidy depends on production starting within a set timeframe, public money goes to plants that actually operate. For readers, the key point is that approval only makes firms eligible. The real test is how much of the pledged capacity gets built.