The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved the Capex Support Scheme to Promote Critical Mineral Processing, with a financial outlay of Rs. 2,814 crore (US$ 296.05 million) over five years, from FY27 to FY31. The scheme aims to strengthen domestic processing capabilities for critical minerals, particularly lithium and nickel, reduce import dependence and develop resilient domestic value chains. It will provide capital subsidies covering 30% of eligible investments for setting up four processing plants, comprising two lithium processing facilities with a minimum capacity of 30,000 tonnes each and two nickel processing facilities with a minimum capacity of 50,000 tonnes each. Cobalt is also expected to be recovered as a by-product of nickel processing.Under the scheme, the maximum capital support will be capped at Rs. 500 crore (US$ 52.60 million) per lithium beneficiary and Rs. 900 crore (US$ 94.69 million) per nickel beneficiary. Beneficiaries will be selected through a two-stage process involving technical qualification followed by financial bidding, with two beneficiaries selected for each mineral based on the least-cost criterion. Incentives will be disbursed in three tranches linked to the achievement of specified milestones. The initiative is expected to support critical sectors such as electric mobility, battery energy storage systems (BESS), electronics, defence and speciality steel. It also aims to strengthen India's critical mineral value chain, promote domestic value addition and advance the objectives of Atmanirbhar Bharat.Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.https://www.ibef.org/news/cabinet-approves-us-296-05-million-capex-support-scheme-to-promote-critical-mineral-processing (ICE MUMBAI)

Fonte notizia: IBEF