Lok Sabha Question No. 365 (STARRED), answered on 2026-03-18
Subject: Incentive Scheme for Recycling of Critical Minerals
Ministry: MINES
Asked by: Shri Bunty Vivek Sahu, Shri Balabhadra Majhi

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## STARRED QUESTION NO. *365

ANSWERED ON 18.03.2026

## INCENTIVE SCHEME FOR RECYCLING OF CRITICAL MINERALS

*365. Shri Balabhadra Majhi: Shri Bunty Vivek Sahu:

Will the Minister of MINES be pleased to state:

- (a) whether the incentive scheme of Rs. 1,500 crore for recycling of critical minerals has been launched and if so, the potential benefit across the country particularly in Chhindwara in Madhya Pradesh, Rajsamand in Rajasthan and Keonjhar Lok Sabha Constituency in Odisha; (b) the details of the main provisions of the scheme, eligibility criteria and allocation, State-wise; (c)  the  targeted capacity of mineral recovery to be achieved by 2030 including the estimated share of Madhya Pradesh; (d)  the  advanced  technologies  being  promoted  under  the  Offshore  Areas  Mineral Rules, 2026 to minimize environmental impacts of deep-sea and offshore mining; (e)  the  progress  made  in  promoting  domestic  recycling  capacity  and  extraction  of critical minerals such as lithium, cobalt and nickel since the scheme's launch; and (f) whether the Government is aware that the Nabarangpur Lok Sabha Constituency has mineral resources such as bauxite, graphite, iron ore and manganese and if so, the details of the action plan for sustainable extraction, value addition, recycling and year-wise  DMF  fund  utilization  along  with  initiatives  for  skill  development  and
- employment generation for local youth?

## ANSWER

THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

- (a) to (f): A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (F) IN RESPECT OF LOK SABHA STARRED QUESTION NO. 365 ANSWERED ON 18.03.2026 REGARDING ' INCENTIVE SCHEME FOR RECYCLING OF CRITICAL MINERALS' ASKED BY SHRI BALABHADRA MAJHI AND SHRI BUNTY VIVEK SAHU

(a) to (f): The Scheme Guidelines for the ₹1,500 crore incentive scheme for critical mineral recycling were issued and the Scheme launched on 2 nd  October, 2025. The Scheme  incentivizes  creation  of  recycling  capacity  for  the  extraction  of  critical minerals, including lithium, nickel and cobalt, from used products like Spent Lithiumion batteries (LiBs) and e-waste to build supply chain resilience and reduce import dependence in critical minerals.

Entities eligible under the Scheme include both large & established recyclers (Group A), with global manufacturing revenue greater than or equal to ₹200 crores, and small & new recyclers including start-ups (Group B). Incentives include capex subsidy on plant & machinery, equipment and associated utilities, as well as opex subsidy on specified incremental sales. Total incentive ceiling per entity is ₹50 crores for Group A and ₹25 crores for Group B recyclers with target annual capacity for mineral recovery by 2030-31 as 270 kilo tons. The Scheme is applicable across the country, including the States of Madhya Pradesh, Rajasthan and Odisha, with no State-specific targets. The last date for submission of applications is 1 st  April, 2026.

Under  the  regulatory  framework  of  the  Offshore  Areas  Mineral  (Development  and Regulation) Act, 2002 and the Offshore Areas Mineral Conservation and Development Rules,  2024,  the  Government  promotes  the  use  of  monitoring,  compliance  and scientific management systems to ensure that offshore mineral exploration and mining operations are carried out in an environmentally responsible manner.

There is no mining lease of major minerals in the Nabarangpur district of Odisha. As per  the  National  Mineral  Inventory  maintained  by  the  Indian  Bureau  of  Mines, Nabarangpur has 2.65 million tons of Resources for Iron Ore, for which Geological Survey of India  has handed over a Geological Memorandum in 2021 to the State Government of Odisha.

District  Mineral  Foundations  (DMF)  are  managed  by  district  level  bodies  and monitored by State level monitoring committees. The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines, 2024 mandates utilization of at least 70 percent of  DMF funds in High Priority  Sectors  such  as  drinking  water  supply,  health  care, education, skill development & livelihood generation, and remaining funds in Other Priority Sectors. The Governing Council of DMF prepares action plans and sanctions projects  for  utilization  of  DMF  funds.  As  per  information  provided  by  the  State Government of Odisha, DMF funds amounting to ₹1.35 crores have been utilized in Nabarangpur district, with ₹75 lakhs, ₹42 lakhs and ₹18 lakhs utilized in the financial years 2019-20, 2020-21 and 2024-25 respectively.

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