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Cabinet Approves Rs 2,814-Crore Scheme to Boost Critical Mineral Processing
Sentiment: NeutralHigh Priority
What Happened?
The Union Cabinet has approved a Rs 2,814-crore scheme aimed at enhancing domestic processing of critical minerals like lithium and nickel to reduce import dependence. The initiative will support the establishment of four processing plants over five years.
Key points
- The scheme has a total financial outlay of Rs 2,814 crore.
- It will be implemented over five years, from FY 2026-27 to 2030-31.
- The government will provide a 30% capital subsidy for establishing four processing plants.
- Two lithium processing facilities will have a minimum capacity of 30 kilotonnes each.
- Two nickel processing plants will have a minimum capacity of 50 kilotonnes each.
- Maximum capital support is capped at Rs 500 crore for lithium and Rs 900 crore for nickel projects.
- Beneficiaries will be selected based on technical qualifications and least-cost criteria.
Key insights
- The initiative may strengthen India's position in the global mineral supply chain.
- It could lead to increased domestic production of high-purity minerals essential for various industries.
- The scheme may improve resilience against geopolitical disruptions affecting mineral supplies.
Why it matters
This scheme could enhance India's self-sufficiency in critical minerals, reducing reliance on imports.
Source
India Today
