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Economics May 01, 2026 5 min read Daily brief · #35 of 35

Mines Ministry deems 58 companies eligible to participate in critical minerals recycling scheme

The Ministry of Mines has approved 58 companies as eligible participants under the Incentive Scheme for Promotion of Critical Mineral Recycling, a flagship c...

GS Paper III (Infrastructure Environment Resource Security)

What Happened

  • The Ministry of Mines has approved 58 companies as eligible participants under the Incentive Scheme for Promotion of Critical Mineral Recycling, a flagship component of the National Critical Mineral Mission (NCMM).
  • The approvals came in two tranches: 20 companies on March 30, 2026 and 38 companies on April 29, 2026.
  • The approved companies collectively pledge to build approximately 850 kilotonnes per annum (ktpa) of recycling capacity and have committed investments of around ₹5,000 crore (₹50 billion).
  • The scheme supports recovery of critical minerals from lithium-ion battery scrap, e-waste, and other industrial waste streams.
  • This is part of a broader national strategy to reduce import dependence for minerals essential to clean energy, electric vehicles (EVs), defence electronics, and semiconductor supply chains.

Static Topic Bridges

Critical Minerals and India's 30-Mineral List

"Critical minerals" are those whose supply disruption could significantly impact an economy's clean energy transition, defence capability, or industrial base, and for which no ready substitutes exist. India formally identified 30 critical minerals in 2023 following a committee constituted in November 2022 by the Ministry of Mines.

  • The 30 critical minerals include: lithium, cobalt, nickel, graphite, titanium, vanadium, tungsten, molybdenum, niobium, tantalum, rhenium, beryllium, tellurium, indium, gallium, germanium, selenium, rare earth elements (REEs), silicon, manganese, copper, chromium, tin, antimony, bismuth, cadmium, strontium, zirconium, and platinum-group metals.
  • Of these, 24 have been inserted into Part D of Schedule I of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), giving the Central Government the authority to auction blocks for these minerals.
  • Several of these minerals (lithium, cobalt, REEs) are currently imported entirely or substantially from China, the DRC, and Australia — creating strategic vulnerability.
  • Applications: lithium (Li-ion batteries), cobalt (EV batteries, superalloys), REEs (wind turbines, defence electronics), graphite (battery anodes).

Connection to this news: The 58 approved companies are entering the recycling loop for exactly these minerals — recovering lithium, cobalt, nickel, and REEs from spent batteries and e-waste to create a domestic secondary supply, reducing import dependence.

MMDR Act and Amendments for Critical Minerals

The Mines and Minerals (Development and Regulation) Act, 1957 is the primary legislation governing mining activity in India. Major amendments in 2021 and 2023 significantly restructured the sector to facilitate private sector participation and fast-track critical mineral development.

  • The MMDR Amendment Act, 2021 introduced composite licences (combining prospecting and mining), removed end-use restrictions on auction-acquired mines, and opened atomic minerals to private entities for the first time.
  • The MMDR Amendment Act, 2023 specifically added 24 critical and strategic minerals to Part D of Schedule I, empowering the Central Government (not state governments) to auction these blocks directly.
  • The first tranche of critical mineral block auctions under the amended Act was launched on November 29, 2023 for 20 blocks.
  • State governments retain jurisdiction over remaining minerals but central-auctioned critical mineral blocks bypass state auction processes to ensure speed and strategic alignment.

Connection to this news: The recycling scheme complements MMDR-led primary extraction auctions. Together, primary mining and secondary recycling form the two pillars of India's domestic critical mineral supply strategy.

National Critical Mineral Mission (NCMM) and the Incentive Scheme

The National Critical Mineral Mission (NCMM) was launched to build end-to-end domestic capability in critical mineral exploration, extraction, processing, and recycling. The Union Cabinet approved the Incentive Scheme for Critical Mineral Recycling with a total outlay of ₹1,500 crore for a six-year tenure from FY 2025–26 to FY 2030–31.

  • Incentive Structure: (a) 20% capital expenditure (Capex) subsidy on plant, machinery, and associated utilities; (b) Operational expenditure (Opex) subsidy on incremental sales — 40% in the 2nd year and 60% in the 5th year of production.
  • Expected Outcomes: At least 270 kilotonnes per annum of recycling capacity; approximately 40 kilotonnes of annual critical mineral production from secondary sources; ₹8,000 crore investment attracted; approximately 70,000 direct and indirect jobs created.
  • Eligible waste streams: lithium-ion battery scrap (from EVs, consumer electronics), e-waste, and industrial scrap containing critical minerals.
  • The scheme runs alongside the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) batteries, creating a battery-to-battery circular economy loop.

Connection to this news: The 58 companies now eligible represent the first operational cohort of the NCMM's recycling pillar. Their clearance marks the transition from policy design to project execution.

KABIL — Khanij Bidesh India Ltd

KABIL is a joint venture formed by three central public sector enterprises (CPSEs) — National Aluminium Company Ltd (NALCO), Hindustan Copper Ltd (HCL), and Mineral Exploration and Consultancy Ltd (MECL) — to acquire critical mineral assets overseas and ensure consistent supply to the Indian domestic market.

  • KABIL's mandate is to identify, acquire, explore, and develop strategic mineral assets abroad — particularly lithium, cobalt, and REEs.
  • KABIL has engaged with state-owned entities in Argentina (lithium brine deposits) and Australia (lithium, cobalt) through the Ministry of External Affairs and Indian Embassies.
  • The domestic recycling scheme and KABIL's overseas acquisition strategy are complementary: imports and overseas assets serve immediate demand while recycling builds long-term self-sufficiency.
  • KABIL's establishment reflects the model of resource diplomacy — governments partnering to secure mineral supply chains at the bilateral level.

Connection to this news: The domestic recycling drive reduces the volume of critical minerals India needs KABIL to procure externally, strengthening overall supply-chain resilience by combining import acquisition with circular recovery.

Key Facts & Data

  • Companies approved under Critical Mineral Recycling Incentive Scheme: 58
  • First tranche (March 30, 2026): 20 companies; Second tranche (April 29, 2026): 38 companies
  • Pledged recycling capacity: approximately 850 kilotonnes per annum
  • Total committed investment: approximately ₹5,000 crore
  • Incentive Scheme total outlay: ₹1,500 crore over FY 2025–26 to FY 2030–31
  • Expected recycling capacity from scheme: 270 ktpa minimum; annual critical mineral production: ~40 ktpa
  • Jobs expected: ~70,000 direct and indirect
  • India's 30 critical minerals list notified in 2023; 24 inserted into MMDR Act Schedule I
  • MMDR Amendment enabling central government to auction critical mineral blocks: 2023
  • KABIL JV partners: NALCO, Hindustan Copper Ltd, MECL
  • Key import sources for critical minerals: China (REEs, graphite), DRC (cobalt), Australia (lithium, nickel)
On this page
  1. What Happened
  2. Static Topic Bridges
  3. Critical Minerals and India's 30-Mineral List
  4. MMDR Act and Amendments for Critical Minerals
  5. National Critical Mineral Mission (NCMM) and the Incentive Scheme
  6. KABIL — Khanij Bidesh India Ltd
  7. Key Facts & Data
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