The Indian government has approved a scheme to promote critical mineral processing with a financial outlay of over INR 28 billion (about USD 300 million) over a period of five years.
At present, India remains substantially dependent on imports for refined intermediates and high-purity materials, owing to the nascent stage of domestic beneficiation and processing infrastructure for critical minerals, including lithium, nickel and cobalt, the government said.
Against this backdrop, the “Capex Support Scheme to Promote Critical Mineral Processing” has been formulated to provide targeted capital expenditure support for the establishment and operationalisation of domestic processing facilities.
“The scheme aims to develop domestic processing capabilities in India to support value addition within the country, reduce import dependence, and develop the value chain,” the government said. “The scheme targets processing of lithium and nickel ores/intermediary products into high-purity compounds. Cobalt is also expected to be recovered as a by-product of nickel production.”
The scheme is expected to support critical sectors such as electric mobility, BESS, electronics, defence and speciality steel.
The scheme period is from FY 2026-27 to 2030-31. Under the scheme, capital subsidy of 30% of eligible investment will be provided for setting up four critical mineral processing plants, comprising two lithium processing plants (with a minimum capacity of 30 kt each) and two nickel processing plants (with a minimum capacity of 50 kt each). The maximum capital support will be capped at INR 5 billion (about USD 53 million) per lithium beneficiary and INR 9 billion (about USD 95 million) per nickel beneficiary, respectively.
To stay up to date with the latest developments, sign up for the Newsletter.
Discover more from PressNewsAgency
Subscribe to get the latest posts sent to your email.