The Union Cabinet has approved ‘Capex Support Scheme to Promote Critical Mineral Processing’ with a financial outlay of Rs 2,814 crore from FY 2026-27 to 2030-31. The scheme has been formulated to provide targeted capital expenditure support for the establishment and operationalisation of domestic processing facilities amid geopolitical disruptions, price volatility, and potential supply restrictions disrupting critical minerals’ supply chain. The disruption in supply chains pose risk to national security, economic sovereignty, and the timely achievement of decarbonisation targets.
To address this, the scheme facilitates the development of domestic processing capabilities in India to support value addition within the country, reduce import dependence, and develop value chain. It targets processing of Lithium and Nickel ores/intermediary products into high purity compounds. Cobalt is also expected to be recovered as a by-product of nickel production. This will support critical sectors such as electric mobility, Battery Energy Storage System (BESS), electronics, defence, speciality steel etc.
Under the scheme, capital subsidy of 30% of eligible investment will be provided for setting up four critical mineral processing plants, comprising two lithium processing plants (with a minimum capacity of 30 kt each) and two nickel processing plants (with a minimum capacity of 50 kt each). The maximum capital support will be capped at Rs 500 crore per lithium beneficiary and Rs 900 crore per nickel beneficiary, respectively. The scheme is an important step towards advancing the objectives of Atmanirbhar Bharat by supporting the development of resilient domestic processing infrastructure and strengthening India’s capabilities across the critical mineral value chain.