The Union Cabinet has approved the ‘Capex Support Scheme to Promote Critical Mineral Processing’ with a financial outlay of Rs.2,814 crore over a period of five years, according to a Ministry of Mines release.
According to the government, the scheme is aimed at addressing India’s dependence on imports for refined intermediates and high-purity materials, supporting sectors such as electric mobility, electronics, and defence. Running from FY 2026-27 to 2030-31, the scheme will provide a capital subsidy of 30% of eligible investment to set up four processing plants, consisting of two lithium and two nickel processing facilities. Cobalt is expected to be recovered as a by-product of nickel production.
Beneficiaries will be selected through a two-stage process involving technical qualification followed by financial bidding based on the least-cost criterion. The maximum capital support is capped at Rs.500 crore per lithium beneficiary and Rs.900 crore per nickel beneficiary, with incentives disbursed in three milestone-linked tranches.
What it means
- Eligible beneficiaries will receive a capital subsidy of 30% of eligible investment for setting up four critical mineral processing plants.
- The maximum capital support is capped at Rs.500 crore per lithium beneficiary and Rs.900 crore per nickel beneficiary.
- Incentives will be disbursed in three tranches linked to the achievement of specified milestones.
Source
Press Information Bureau, Government of India, “Cabinet Approves Capex Support Scheme to Promote Critical Mineral Processing with an Outlay of Rs.2,814 Crore for Lithium and Nickel processing”. Read the original release.
Summary of an official release for general information only. Not investment advice. Read the original source before acting on any information.
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