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News: The Union Cabinet has approved a ₹2,814 crore scheme to promote domestic processing of critical minerals and reduce import dependence.
About Capex Support Scheme to Promote Critical Mineral Processing
- The Capex Support Scheme to Promote Critical Mineral Processing provides capital expenditure (capex) support to establish domestic critical mineral processing facilities.
- Duration: The scheme will operate for five years, from FY 2026–27 to 2030–31.
- Target Minerals: The scheme focuses on Lithium and Nickel processing.
- It also aims to recover Cobalt as a by-product of nickel production.
- Aim: The scheme aims to develop domestic processing capacity, increase value addition, reduce import dependence and strengthen India’s critical mineral value chain.
- Key Features:
- Financial Outlay: The scheme has a total financial outlay of ₹2,814 crore.
- Capital Subsidy: The scheme provides a 30% capital subsidy on eligible investment for establishing four processing plants: two for lithium processing and two for nickel processing.
- Plant Capacity: It supports two lithium plants with a minimum capacity of 30 kt each and two nickel plants with 50 kt each.
- Maximum Support: The capital support is capped at ₹500 crore per lithium beneficiary and ₹900 crore per nickel beneficiary.
- Beneficiary Selection: Beneficiaries will be selected through a two-stage process involving technical qualification and financial bidding.
- Incentives will be released in three milestone-based tranches.
