Cabinet approves Rs 2,814 crore scheme for critical mineral processing
The scheme aims to establish an ecosystem for lithium and nickel processing to reduce import dependence and strengthen supply chains.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a Rs 2,814 crore scheme to promote critical mineral processing on Wednesday, according to News18 and The Indian Express.
Information and Broadcasting Minister Ashwini Vaishnaw announced that the 'Capex Support Scheme to Promote Critical Mineral Processing' will be implemented over five years from FY27 to FY31.
The initiative will provide a 30 per cent capital subsidy on eligible investments to set up four processing plants. This includes two lithium plants with a minimum capacity of 30,000 tonnes each and two nickel plants with a minimum capacity of 50,000 tonnes each.
Capital support is capped at Rs 500 crore per lithium beneficiary and Rs 900 crore per nickel beneficiary. Beneficiaries will be selected through a two-stage process involving technical evaluation and financial bidding, with preference given to the least-cost criterion.
The government has identified Andhra Pradesh, Odisha, Gujarat, and Maharashtra to promote these plants. Gujarat and Andhra Pradesh are slated for rare earth processing, while Odisha and Maharashtra will focus on nickel and lithium, respectively.
The scheme is expected to support sectors including electric mobility, battery energy storage systems (BESS), electronics, defence, and speciality steel. It aims to address vulnerabilities caused by the fact that China controls 90 per cent of global critical mineral processing.