NEWS: Union Cabinet approved a ₹2,814 crore scheme to promote domestic critical mineral processing over FY 2026–27 to FY 2030–31.

ABOUT THE SCHEME

• Ministry: Ministry of Mines.
• Type: Industrial incentive scheme.
• Duration: 5 years (2026–27 to 2030–31).
• Aim: Develop domestic mineral processing and refining capacity, reduce import dependence and promote value addition.

TARGETED MINERALS

• Lithium: Two processing plants, minimum capacity 30 kt each.
• Nickel: Two processing plants, minimum capacity 50 kt each.
• Cobalt: Recovery as a by-product of nickel refining.

KEY FEATURES

• Capital Subsidy: 30% of eligible investment.
• Plant Support: Lithium plants – up to ₹500 crore per beneficiary; Nickel plants – up to ₹900 crore per beneficiary.
• Selection: Two-stage competitive bidding.
• Disbursement: Three performance-linked instalments.
• Applications: Battery manufacturing, EVs, energy storage, defence and specialty steel.