India Clears 58 Companies Under INR 1,500 Crore Critical Mineral Recycling Scheme, with INR 5,000 Crore in Proposed Investments

November 02, 2026

On April 30, 2026, the Ministry of Mines announced that 58 entities had been approved as eligible to participate in India's INR1,500 crore Incentive Scheme for Promotion of Critical Mineral Recycling. The entities have pledged approximately INR5,000 crore in investment and around 850 kilo tonnes per annum (KTPA) in recycling capacity. These are proposed figures, not verified installed or operating capacity. Eligibility does not mean that incentives have been disbursed; financial support remains subject to the scheme's conditions and claim-verification process.

What Did the April 30 Announcement Say?

The Ministry of Mines announced approval of 58 entities under the Incentive Scheme for Promotion of Critical Mineral Recycling, part of the National Critical Mineral Mission. Twenty entities were cleared on March 30, 2026, and 38 at the Executive Committee meeting on April 29, 2026. The pledged capacity is about 850 kilo tonnes per annum (KTPA).

Key Scheme Developments

The scheme was notified on October 2, 2025. Applications were open from October 2, 2025, to April 1, 2026. The Jawaharlal Nehru Aluminium Research Development and Design Centre, acting as Project Management Agency, evaluated the proposals. 

The Ministry's April 30 announcement confirms eligibility approval for 58 entities. These entities must now meet the applicable project implementation, commercial production and incentive-claim requirements. The announcement does not establish that all proposed projects have commenced construction or production.

What Is the Incentive Structure?

The Union Cabinet approved the scheme in September 2025 for six years, from FY 2025-26 to FY 2030-31. As reported, it offers:

The scheme provides capital expenditure support for eligible recycling facilities, subject to the prescribed investment, commissioning and claim conditions. The applicable subsidy percentage, eligible expenditure and production-start deadlines should be confirmed against the Ministry of Mines' official scheme guidelines.

An OPEX incentive linked to incremental sales over the FY 2025-26 base year, paid 40% in year two and 60% in year five, subject to sales thresholds. Caps of INR 50 crore for large entities and INR 25 crore for small entities, including both CAPEX and OPEX support. The OPEX portion is capped at INR 10 crore and INR 5 crore.

One-third of the outlay is earmarked for small, new recyclers, including start-ups. 

These terms are from Cabinet-approval coverage and secondary reports on the guidelines. IMARC Engineering has not reviewed the Ministry of Mines guidelines document, so applicants should confirm the exact rates, timelines and conditions in that document.

Is Eligibility the Same as Receiving Incentives?

No. Approval as an eligible participant is not the same as receiving an incentive. Under the scheme, financial support is linked to eligible investment, commencement of commercial production and the applicable performance requirements. Claims must be supported by prescribed documents and verified through the Project Management Agency and the scheme's Executive Committee.

The Ministry's April 30 announcement did not disclose company-wise incentive disbursements. The INR 5,000 crore figure represents pledged investment by the selected entities, not subsidy paid by the government. Actual support will depend on each project's compliance with the scheme conditions and successful claims.

Which Recycling Projects Are Covered?

The scheme covers spent lithium-ion batteries, e-waste and other eligible waste streams containing critical minerals, including specified catalysts, magnets and alloy scrap. Subject to the official guidelines, support may extend to new recycling facilities and the expansion, modernisation or diversification of existing units.

Does Black Mass Production Alone Qualify?

No. The scheme excludes activities limited to collection, dismantling, shredding, crushing, sorting or producing black mass without further extraction of critical minerals. Eligible projects must undertake actual recovery and separation of critical minerals through the prescribed processing route and meet the scheme's applicable performance and yield requirements. Applicants should check the official guidelines for the full eligibility criteria.

What Are the Implications for Recycling Plant Development?

A recycling plant is a chemical process facility, and its design depends on the feedstock. Lithium recovery, cobalt recovery and nickel recovery from batteries need collection and sorting, pre-treatment, a refining stage and effluent handling. Utilities include power, process water, reagent storage and waste treatment. E-waste lines need different equipment, so technology selection and recycling plant machinery should follow the feedstock mix.

Environmental approvals and project scheduling can influence the time required to establish and commission a recycling facility. Applicants should verify the scheme's applicable commissioning deadlines, incentive conditions and treatment of environmental-clearance requirements before finalising their implementation schedule. Delays can affect the applicable rate if the prescribed production-start window is missed. Site selection, environmental approvals, process design, utilities and commissioning should therefore be planned as an integrated project schedule.

What Happens Next?

At the Cabinet-approval stage, the scheme targeted at least 270 KTPA of recycling capacity and around 40 KTPA of annual critical-mineral production. The 850 KTPA announced on April 30 represents pledged capacity from eligible entities, not verified operating capacity. Although the pledged figure is higher than the scheme's original recycling-capacity target, the two figures should not be treated as evidence of capacity already commissioned or critical minerals already recovered.

The 58 approvals show strong interest. The scheme's real test will be how much of the pledged capacity is built, operated and able to recover critical minerals.

Industrial Project Perspective: IMARC Engineering's View

For eligible companies, the next challenge is translating approval into an executable project. A feasibility study should validate feedstock availability, recovery yields and product markets. CAPEX planning should distinguish eligible expenditure from excluded costs and account for the scheme's investment thresholds and incentive limits. Engineering should establish the process route, utilities, environmental controls and commissioning sequence early. Project scheduling should also account for the production-start deadlines that determine the applicable CAPEX incentive rate.

We support recyclers and investors with feasibility studies, DPR preparation, CAPEX planning, engineering and project management. We are not part of the Ministry's process, and companies should rely on the official guidelines for eligibility.