{"id":132077,"date":"2026-11-05T11:25:15","date_gmt":"2026-11-05T05:55:15","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=132077"},"modified":"2026-11-05T11:25:15","modified_gmt":"2026-11-05T05:55:15","slug":"indias-critical-mineral-processing-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-critical-mineral-processing-scheme\/","title":{"rendered":"India\u2019s Critical Mineral Processing Scheme &#8211; Strengthening Domestic Capacity and Supply Chain Security"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Critical Mineral Processing Scheme Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Union Cabinet has approved the Critical Mineral Processing Scheme &#8211;<\/span> <span style=\"font-weight: 400;\">a <\/span><b>\u20b92,814-crore<\/b><span style=\"font-weight: 400;\"> Capital Expenditure (Capex) Support Scheme to develop domestic processing capacity for critical minerals, particularly lithium and nickel.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The initiative seeks to address India&#8217;s dependence on imported refined materials, reduce strategic vulnerability arising from China&#8217;s dominance and strengthen the domestic critical mineral value chain.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Key Features of the Scheme<\/b><\/h2>\n<ul>\n<li><b>Financial assistance and capacity targets:<\/b>\n<ul>\n<li><b>Total outlay<\/b><span style=\"font-weight: 400;\">: \u20b92,814 crore.<\/span><\/li>\n<li><b>Duration<\/b><span style=\"font-weight: 400;\">: Five years, from FY 2026-27 to FY 2030-31.<\/span><\/li>\n<li><b>Capital subsidy<\/b><span style=\"font-weight: 400;\">: 30% of eligible capital investment.<\/span><\/li>\n<li><b>Processing facilities<\/b><span style=\"font-weight: 400;\">: Four plants \u2014 two for lithium and two for nickel.<\/span><\/li>\n<li><b>Capacity and financial support: <\/b><span style=\"font-weight: 400;\">For Lithium, minimum capacity per plant will be 30,000 tonnes, while maximum capital support per beneficiary<\/span> <span style=\"font-weight: 400;\">will be<\/span> <span style=\"font-weight: 400;\">\u20b9500 crore (Nickel<\/span> <span style=\"font-weight: 400;\">&#8211; 50,000 tonnes, \u20b9900 crore).<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Selection and disbursement:<\/b>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-weight: 400;\">Beneficiaries will be selected through a <\/span><b>two-stage process<\/b><span style=\"font-weight: 400;\">: technical qualification followed by financial bidding.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Two beneficiaries will be selected for each mineral based on the least-cost criterion, prioritising bidders seeking the lowest government support.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Incentives will be disbursed in three tranches linked to the achievement of specified milestones.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Processing objectives: <\/b><span style=\"font-weight: 400;\">The scheme aims to convert lithium and nickel ores and intermediate products into high-purity compounds. Nickel processing is also expected to facilitate the recovery of cobalt as a by-product.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Industry perspective:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Industry stakeholders have welcomed the scheme as a significant step towards addressing India&#8217;s processing-capacity gap.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">For example, <\/span><b>Attero<\/b><span style=\"font-weight: 400;\"> emphasised that domestic processing is as important as securing access to mineral resources.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Significance of the Scheme<\/b><\/h2>\n<ul>\n<li><b>Reducing import dependence:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">India has limited domestic processing capacity and relies heavily on imports of refined critical minerals, including lithium, nickel, cobalt, <strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/what-are-rare-earth-elements-ree\/\" target=\"_blank\">rare earth elements (REEs)<\/a><\/strong> and silicon.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The scheme will &#8211;<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Promote domestic beneficiation and processing infrastructure.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Reduce dependence on imported refined intermediates and high-purity materials.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Enhance <\/span><b>domestic value addition<\/b><span style=\"font-weight: 400;\"> and strengthen supply chain resilience.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><b>Addressing China\u2019s strategic dominance:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">China controls approximately <\/span><b>90% <\/b><span style=\"font-weight: 400;\">of global critical mineral processing capacity and can use this dominance as leverage during trade tensions.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">India&#8217;s limited processing capabilities expose it to supply disruptions, price volatility and geopolitical risks.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Developing indigenous processing capacity is essential for economic security, technological self-reliance and<\/span><b> strategic autonomy.<\/b><\/li>\n<\/ul>\n<\/li>\n<li><b>Supporting strategic industries: <\/b><span style=\"font-weight: 400;\">Domestic processing facilities are expected to strengthen mineral supplies for &#8211;<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Electric mobility and electric vehicle batteries.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Battery Energy Storage Systems (<\/span><b>BESS<\/b><span style=\"font-weight: 400;\">).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Electronics and semiconductor-related industries.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Defence and speciality steel.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Chemicals, catalysts and pharmaceuticals.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Overcoming structural challenges:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">India&#8217;s commercial-scale processing projects face several constraints &#8211;<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">High capital investment requirements.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Limited availability of suitable processing technologies.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Constrained access to raw materials.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Nascent domestic beneficiation and processing infrastructure.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">The capital subsidy seeks to reduce investment risks and encourage <\/span><b>private-sector participation<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Critical Mineral Processing Parks<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government is developing mineral-specific processing parks in <\/span><b>four states<\/b><span style=\"font-weight: 400;\"> to establish integrated ecosystems.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gujarat<\/b><span style=\"font-weight: 400;\">: Availability of heavy REEs and existing processing capabilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Andhra Pradesh:<\/b><span style=\"font-weight: 400;\"> Development of a rare earth corridor.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maharashtra<\/b><span style=\"font-weight: 400;\">: Proposed lithium processing ecosystem.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Odisha:<\/b><span style=\"font-weight: 400;\"> Domestic nickel reserves and access to imported nickel from Indonesia and other countries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The parks aim to integrate mineral processing, infrastructure and associated industrial activities.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Complementary Government Initiatives<\/b><\/h2>\n<ul>\n<li><b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/national-critical-mineral-mission\/\" target=\"_blank\">National Critical Minerals Mission (NCMM)<\/a>:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">It seeks to strengthen India&#8217;s critical mineral supply chain through exploration, mining, processing, recycling and international partnerships.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It proposes a National Critical Mineral Stockpile Programme to maintain strategic reserves and protect against supply disruptions.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>National Critical Mineral Stockpile Programme:<\/b>\n<ul>\n<li><b>Allocation<\/b><span style=\"font-weight: 400;\">: \u20b9500 crore for the development of reserves.<\/span><\/li>\n<li><b>Mission period<\/b><span style=\"font-weight: 400;\">: 2024-25 to 2030-31.<\/span><\/li>\n<li><b>Objective<\/b><span style=\"font-weight: 400;\">: Ensure uninterrupted availability of critical and strategic minerals during supply shocks.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Critical Mineral Recycling:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The processing scheme complements existing government support for recycling critical minerals from used batteries and electronic waste.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Together, primary mineral processing and recycling can create a more dependable domestic supply chain.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Way Forward<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India must <\/span><b>combine <\/b><span style=\"font-weight: 400;\">capital incentives with technology development, reliable raw-material access, skilled manpower, sustainable processing practices and international mineral partnerships.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Developing <\/b><span style=\"font-weight: 400;\">domestic processing capacity alongside recycling and strategic stockpiling will be crucial to reducing import dependence and ensuring long-term supply chain security.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Conclusion<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The scheme represents an important step towards transforming India from a predominantly import-dependent consumer of critical mineral compounds into a competitive domestic processing and <\/span><b>value-addition hub<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/indianexpress.com\/article\/business\/government-agenda-capex-scheme-critical-minerals-10949511\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>IE<\/b><\/a><b> |\u00a0<\/b><a href=\"https:\/\/www.hindustantimes.com\/india-news\/cabinet-clears-rs-4-371-crore-statistics-overhaul-rs-2-814-crore-critical-minerals-scheme-850-fast-track-courts-101793840914951.html\" target=\"_blank\" rel=\"nofollow noopener\"><b>HT<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Cabinet has approved the Critical Mineral Processing Scheme &#8211; a \u20b92,814-crore Capex Support Scheme to develop domestic processing capacity for critical minerals.<\/p>\n","protected":false},"author":19,"featured_media":132093,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[11370,60,22,59],"class_list":["post-132077","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-critical-mineral-processing-scheme","tag-mains-articles","tag-upsc-current-affairs","tag-upsc-mains-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=132077"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132077\/revisions"}],"predecessor-version":[{"id":132096,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/132077\/revisions\/132096"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/132093"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=132077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=132077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=132077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}