NEWS – The Union Cabinet has approved a new scheme worth ₹1,500 crore to promote recycling of electronic and battery waste. The goal is to extract critical minerals like lithium, cobalt, and nickel, which are vital for industries like electronics, renewable energy, and electric vehicles.

HIGHLIGHTS

What is the Scheme About?

• Tenure: 6 years (FY 2025-26 to FY 2030-31).
• Focus Materials:
  • E-waste
  • Lithium-ion battery (LIB) scrap
  • Other scrap (like catalytic converters from old vehicles).
• Beneficiaries: Both big recycling companies and small/new start-ups.
• Budget Split: One-third of funds reserved for small/new recyclers.

How Will the Scheme Work?

1. Capital Support (Capex subsidy):
   • 20% subsidy for new machinery and equipment.
   • Extra time allowed, but subsidy reduces if delayed.
2. Operational Support (Opex subsidy):
   • Linked to actual sales.
   • 40% of subsidy in 2nd year, 60% in 5th year.
   • Helps recyclers increase production.
3. Limits on Subsidy:
   • Large companies: Up to ₹50 crore.
   • Small/new recyclers: Up to ₹25 crore.
   • Separate ceiling for Opex subsidy (₹10 crore for large, ₹5 crore for small).

Expected Benefits

• Recycling Capacity: 270 kilo tonnes per year.
• Critical Mineral Output: About 40 kilo tonnes.
• Investments: Nearly ₹8,000 crore.
• Jobs: Around 70,000 direct and indirect employment opportunities.

Why is it Important?

• India depends heavily on imports for critical minerals.
• Recycling waste will make the country self-reliant in essential raw materials.
• It supports green energy, electric mobility, and electronics manufacturing.