Business EconomyPosted at: Nov 4 2026 5:27PM


Cabinet approves 4 critical mineral processing plants with Rs 2,814 cr push

New Delhi, Nov 4 (UNI) union Cabinet on Wednesday approved a Rs 2,814 crore scheme to boost domestic processing of critical minerals such as lithium and nickel, as India looks to reduce its dependence on imports and strengthen supply chains for key industries.
The scheme, titled Capex Support Scheme to Promote Critical Mineral Processing, will run for five years, from FY27 to FY31. It aims to encourage companies to establish domestic processing facilities by offering financial assistance towards their capital expenditure.
Under the programme, the government plans to support the establishment of four processing plants, two for lithium and two for nickel. Each lithium facility will have a minimum processing capacity of 30,000 tonnes, while nickel plants will have a minimum capacity of 50,000 tonnes each. Cobalt is also expected to be recovered as a by-product of nickel processing.
The government will provide a capital subsidy covering 30% of eligible investments. Financial assistance will be capped at Rs 500 crore for each lithium processing project and Rs 900 crore for each nickel processing project.
The selection of companies will take place through a two-stage bidding process. Applicants will first undergo technical evaluation, following which eligible companies will participate in financial bidding. Two beneficiaries will be selected for each mineral based on the lowest capital support sought from the government.
The incentives will be released in three instalments, linked to the completion of specified project milestones.
Union Minister Ashwini Vaishnaw said, “Our Critical Minerals Mission has been progressing in a systematic and methodical manner. A major decision taken today is the approval of a scheme for the processing of critical minerals. The focus of the scheme will be to process raw materials, whether obtained through mining or recycling, and bring them to a stage where they are ready for manufacturing. The scheme will cover all 24 critical minerals identified by the government."
"It will include both recycled raw materials and materials extracted from mines. This will provide a major boost to manufacturing, including electronics, semiconductors, batteries, defence equipment, heavy equipment and machinery. All these sectors use critical minerals and will benefit from the scheme," he added.
The initiative is expected to support industries that depend on critical minerals, including electric vehicles, battery energy storage systems, electronics, defence and speciality steel. Lithium, nickel and cobalt are important inputs for battery manufacturing and several advanced industrial applications.
For India, developing domestic processing capacity is seen as an important step towards reducing these vulnerabilities and securing supplies for its manufacturing and clean energy ambitions.UNI VK AAB
Tags: #Cabinet approves 4 critical mineral processing plants with Rs 2#814 cr push
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