Green Gold: India’s ₹1,500-Crore Incentive Sparks Recycling Boom

India’s ₹1,500-crore Critical Mineral Recycling Incentive Scheme is gaining strong momentum, with over 70 recycling companies registered and more than 10 already meeting eligibility criteria. Announced in October last year, the scheme aims to build 270,000 tonnes of recycling capacity to support India’s critical mineral supply chains.

Speaking at the IMRC 2026 conference, Dr. Anupam Agnihotri, Director, JNARDDC, said the scheme is fully operational and has received robust industry participation. “India has identified 24 critical minerals, many of which are fully or largely import-dependent, making scrap availability, processing, and recovery a strategic priority,” he noted. The scheme provides graded incentives, offering up to ₹50 crore for companies with annual turnover above ₹200 crore and up to ₹25 crore for smaller recyclers.

Dr. Agnihotri also cautioned against delays, stating, “There is a narrow window of five to six years. Countries are already moving towards resource nationalism and may soon restrict exports not just of ores, but also of scrap and waste. India must act now to build domestic recycling and recovery capacity to secure supply chains.” He emphasised that the scheme prioritises high-quality recovery and technological capability, ensuring incentives are directed only to serious recyclers rather than volume-driven operators.

Providing an international perspective, Dr. Rachana Arora of GIZ India said, “Critical raw materials are no longer a single-country issue. India and the European Union are moving toward coordinated approaches on batteries, renewables, and electronics, with recycling and urban mining emerging as shared priorities.” She highlighted the growing global convergence around critical minerals strategy.

On the technology front, Dr. Alok Ranjan Paital, Principal Scientist at CSIR-CSMCRI, noted that while hydrometallurgy remains central to battery recycling, advanced techniques such as direct cathode-to-cathode regeneration could further reduce energy consumption and material losses, provided purity challenges are effectively addressed.

Industry views were echoed by Vijay Pareek, Executive Director, Gravita India Ltd., who said, “Clear eligibility norms, incentive structures, and defined timelines provide confidence to investors and recyclers, accelerating formalisation and capacity creation in scrap-based recovery.”

With applications open until April 2026 and plans to establish Centres of Excellence, the scheme marks a structural shift in India’s critical minerals strategy, positioning recycling and urban mining as core pillars of long-term resource security.

News by Rahul Yelligetti.