Cabinet approves Rs 2,814 crore scheme to promote critical mineral processing
The scheme will fund four plants and cover 24 critical minerals to cut import dependence and support battery, electronics and defence manufacturing.
- On Wednesday, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a Rs 2,814 crore Capex Support Scheme to promote critical mineral processing over five years from FY 2026-27 to 2030-31.
- India remains substantially import-dependent for lithium, nickel, and cobalt, leaving the nation vulnerable to supply disruptions that threaten manufacturing and economic security.
- Under the scheme, the government will provide a 30 per cent capital subsidy for four processing plants: two lithium facilities with 30 kt capacity each and two nickel plants with 50 kt capacity each.
- Manufacturing sectors including electronics, semiconductors, batteries, and defence equipment will benefit from increased domestic processing capacity using both recycled materials and extracted ores.
- The policy advances Atmanirbhar Bharat objectives by building domestic processing infrastructure, positioning India to address strategic vulnerabilities and reduce dependence on global supply chains for high-purity compounds.
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Cabinet approves Rs 2,814-crore scheme to boost critical mineral processing
The Union Cabinet approved a Rs 2,814-crore scheme to promote domestic processing of critical minerals, with subsidies for four lithium and nickel plants to reduce import dependence and strengthen India's mineral supply chain.
Cabinet approves Rs 2,814 crore scheme to promote critical mineral processing
New Delhi, Nov 4: The Union Cabinet, chaired by the Prime Minister Narendra Modi, 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. Processing of critical minerals remains geographically concentrated in a few global locations. This exposes supply chains to geopolitical disruptions, price volatility, and potential supply restrictions, posing severe…
Cabinet approves Rs 2,814-crore scheme to promote critical mineral processing
The Cabinet has also approved Rs 14,500 crore in viability gap funding for 92 GWh of grid-scale energy storage systems between FY27 and FY31. This development is significant given India's ambitious target of 500 GW of renewable energy by 2030.
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