CAPEX Support Scheme: Cabinet Approves ₹2,814 Crore for Lithium and Nickel Processing

The Cabinet approved a ₹2,814 crore CAPEX Support Scheme offering a 30% capital subsidy for four lithium and nickel processing plants to strengthen India's critical mineral supply chains.

CAPEX Support Scheme to Promote Critical Mineral Processing
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CAPEX Support Scheme to Promote Critical Mineral Processing Latest News

Recently, the CAPEX Support Scheme to Promote Critical Mineral Processing has been approved by the Union Cabinet.  

About CAPEX Support Scheme to Promote Critical Mineral Processing

  • It provides targeted capital expenditure (CAPEX) support for establishing domestic critical mineral processing facilities.
  • Time Period: It will run for five years, from FY 2026-27 to FY 2030-31.
  • Nodal Ministry:Ministry of Mines, Government of India
  • Objectives
    • Promote domestic processing capacity: Help set up high-purity Lithium and Nickel processing plants.
      • Lithium plants will process ores and concentrates (excluding brines) into battery-grade products, while nickel plants will produce Class-1 nickel or battery-grade nickel sulphate, with cobalt recovery.
    • Build a resilient value chain: Strengthen the Lithium and Nickel value chain by filling the missing link in processing.
  • Financial Outlay and Support
    • Total outlay: ₹2,814 crore.
    • The scheme offers a capital subsidy of 30% of eligible investment for setting up four processing plants.
    • These include two Lithium plants of at least 30 kt capacity each and two Nickel plants of at least 50 kt capacity each.
    • Support is capped at ₹500 crore per Lithium beneficiary and ₹900 crore per Nickel beneficiary.
  • Selection and disbursement
    • Beneficiaries will be selected through a two-stage process: technical qualification followed by financial bidding.
    • Two beneficiaries will be selected for each mineral based on the least-cost criterion, prioritising bidders seeking the lowest government support.
    • Incentives will be disbursed in three tranches linked to the achievement of specified milestones.

Source: PIB

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