What Are the Environmental and Economic Impacts of Critical Minerals Recycling Incentive Scheme?

 

India is currently dependent on imports of many important minerals. Minerals like lithium, cobalt, nickel, and rare earth minerals are essential for electric vehicles, renewable energy, electronics, and defense. But India imports more than 80% of these from abroad. This increases the cost of foreign exchange and creates risks for the country’s energy security and industrial development.

There is now an emphasis on efficient use of resources and the circular economy across the world. So, the Government of India has launched the Incentive Scheme for Promotion of Critical Minerals Recycling as part of the National Critical Minerals Mission. The scheme aims to recover minerals through urban mining and recycling technologies to reduce foreign dependence and prevent environmental damage.

With a budget of about ₹1,500 crore, this scheme will take forward the vision of a self-reliant India. It will provide a strong foundation for industry, startups, MSMEs, and the environment.

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What is the Critical Minerals Recycling Incentive Scheme?

The Critical Minerals Recycling Incentive scheme has been launched under the National Critical Minerals Mission to increase India’s mineral security. It aims to recover important minerals from secondary sources such as e-waste, lithium-ion battery scrap, and obsolete vehicles.

Instead of conventional mining, this scheme encourages urban mining. Minerals that already exist as waste will be recovered through advanced technology. This will reduce import dependence and pollution caused by batteries and electronic waste.

This scheme will provide three types of financial assistance to investors: CAPEX subsidy, OPEX subsidy, and a hybrid model. So, financial benefits will be available in both cases of setting up new recycling units or expanding old units. In the long run, it will provide economic security and build an environmentally friendly industry.

Objectives of the Scheme

The objective of this incentive scheme is multifaceted. Firstly, to reduce import dependency, as India spends over ₹80,000 crore annually on importing essential minerals. Secondly, to strengthen the country’s industries like battery, e-waste, and end-of-life vehicle recycling.

Thirdly, to involve startups and MSMEs in the mineral recycling industry using advanced technology. Fourthly, to promote clean energy for electric vehicles, renewable energy, and the circular economy.

Finally, one of the objectives of this scheme is to reduce environmental damage and pollution through effective waste management. Overall, it is a win-win initiative for both the economy and the environment.

Essential Minerals Covered by The Scheme

A total of 27 essential minerals is included in the scheme. Some of these are particularly strategically important:

  1. Antimony-bearing ores
  2. Beryl and other beryllium-bearing minerals
  3. Bismuth bearing ores
  4. Cadmium bearing minerals
  5. Cobalt bearing minerals
  6. Gallium bearing minerals
  7. Germanium bearing Zinc ores
  8. Glauconite
  9. Graphite
  10. Indium-bearing minerals
  11. Lithium-bearing minerals
  12. Molybdenum-bearing minerals
  13. Nickel-bearing minerals
  14. Niobium-bearing minerals
  15. Phosphate (without uranium)
  16. Platinum group of elements bearing minerals
  17. Potash
  18. Rare Earth Elements (minerals of the “rare earths” group not containing Uranium and Thorium)
  19. Rhenium-bearing minerals
  20. Selenium-bearing minerals
  21. Tantalum-bearing minerals
  22. Tellurium bearing minerals
  23. Tin-bearing minerals
  24. Titanium-bearing minerals and ores (ilmenite, rutile, and leucoxene),
  25. Tungsten-bearing minerals
  26. Vanadium-bearing minerals
  27. Zirconium-/ Hafnium-bearing minerals and ores, including Zircon

These minerals are directly related to national security and economic strategy. India will be able to create a sustainable supply chain of these through the recycling scheme. This will reduce import risks and strengthen the domestic industry.

Read more – For more information, kindly contact our advisor:


Mr. Parveen Sundriyal

📞 Mobile / WhatsApp: +91 95991 24163

📧 Email: consult@corpzo.com

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