Jaipur, 21st January 2026: The ambitious Rs 1,500-crore Critical Mineral Recycling Incentive Scheme that was announced by the Government last October o promote recycling of critical minerals, has been fully operationalised and has been receiving strong support from the recycling industry, as over 70 recycling companies have already registered and more than 10 have already been acknowledged with clear eligibility norms and investment-linked incentives now in place, stated Dr Anupam Agnihotri, Director, Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC),which operates under Ministry of Mining, while addressing the International Material Recycling Conference – IMRC 2026 – being organised by the Material Recycling Association of India (MRAI) in Jaipur.
Dr Agnihotri added that the scheme has targeted the creation of 270,000 metric tonnes of recycling capacity and offers differentiated incentives for two categories of recyclers. Group A companies with an annual turnover of more than Rs 200 crore are eligible for incentives of up to Rs 50 crore or 20% of the cost of plant and machinery, whichever is lower, while Group B companies with turnover below Rs 200 crore can avail incentives of up to Rs 25 crore or 20% of plant and machinery cost.
With operational guidelines, eligibility norms and institutional mechanisms now in place under the National Critical Mineral Mission, speakers emphasised that recycling rather than primary mining alone will determine India’s ability to secure long-term access to critical minerals amid tightening global supply chains.
Dr.Agnihotri said, “India has identified 24 critical minerals, many of which remain fully or largely import-dependent, making scrap availability, processing and recovery a strategic priority.” He added, “There is a narrow window of five to six years. Countries are already moving towards resource nationalism. Soon, they will restrict exports not just of ores but also of scrap and waste. India must act now to build domestic recycling and recovery capacity if it wants secure supply chains.”
Explaining the design of the incentive framework approved by the Union Cabinet in September 2025 and operationalised through guidelines issued in October, Dr. Agnihotri said the scheme deliberately prioritises high-quality recovery from scrap over short-term volume expansion. “Only R3 and R4 category recyclers are eligible. Group A recyclers must process at least 10,000 tonnes per annum, while Group B recyclers must process a minimum of 5,000 tonnes, with defined purity benchmarks. Incentives are capped at Rs 50 crore or 20% of plant and machinery cost, ensuring support is directed toward serious, technology-driven recycling investments,” he said.
The scheme combines capital expenditure-linked incentives with phased operational expenditure support over a five- to six-year horizon, offering stability to recyclers investing in advanced scrap-processing infrastructure. Incentives are restricted to entities engaged in actual extraction and recovery of critical minerals, excluding black-mass-only operations. Placing recycling within a global context, Agnihotri said critical minerals have emerged as a key determinant of geopolitical and economic power. “The green transition, EV manufacturing, Industry 4.0 and defence technologies all depend on reliable access to critical minerals. Recycling and urban mining will increasingly define national competitiveness,” he said.
Dr. Agnihotri stated that JNARDDC, an autonomous body under the Ministry of Mines, has been designated as the nodal agency for recycling across aluminium, copper, lead and zinc, with recycling and critical minerals formally added to its mandate. “From funding startups beyond TRL-3 to supporting pilot plants through nine Centres of Excellence with financial backing of up to Rs 20 crore, the institutional ecosystem for scrap-based recovery is now firmly in place,” Agnihotri said.
With operational guidelines, eligibility norms and institutional mechanisms now in place under the National Critical Mineral Mission, speakers emphasised that recycling rather than primary mining alone will determine India’s ability to secure long-term access to critical minerals amid tightening global supply chains.
Offering an international perspective, Dr Rachana Arora, Director – Climate Change & Circular Economy, GIZ India, said India’s recycling-led approach aligns with global supply-chain realities. “Critical raw materials are no longer a single-country issue. India and the European Union are moving toward coordinated approaches on batteries, renewables and electronics, with recycling and urban mining emerging as common priorities,” she said, citing India–Germany cooperation across exploration, processing, recycling and technology development.
On the technology front, Dr Alok Ranjan Paital, Principal Scientist, CSIR–CSMCRI, said the policy push coincides with recycling technologies ready for scale-up. “Hydrometallurgy remains central to battery recycling, but advanced processes such as direct cathode-to-cathode regeneration can further reduce energy use and material loss, provided purity challenges are addressed,” he said.
From an industry perspective, Vijay Pareek, Executive Director and SBU Head, Gravita India Ltd., said the Critical Mineral Recycling Incentive Scheme brings long-awaited clarity to the recycling sector. “Clear eligibility norms, incentive structures and timelines provide confidence to investors and recyclers, accelerating formalisation and capacity creation in scrap-based recovery,” he said.
Organised by the Material Recycling Association of India (MRAI), IMRC 2026 is being held from January 20–22, 2026, at the Novotel Jaipur & Convention Centre, bringing together policymakers, recyclers, manufacturers and global stakeholders. Speakers agreed that developments since September 2025—including notification of scheme guidelines, opening of applications through April 2026, establishment of Centres of Excellence and expanding international cooperation—mark a structural shift in India’s mineral strategy, with recycling and scrap recovery firmly positioned at the core of critical mineral security.
On the sidelines of the conference, MRAI Battery Recycling Excellence Awards 2026 were conferred to recognise industry leadership, with Ardee Industries Limited named Recycler of the Year (MSME Category) and Gravita India Limited awarded Recycler of the Year (Large-Scale Category).