Cabinet Approves Capex Support Scheme to Promote Critical Mineral Processing with an Outlay of Rs.2,814 Crore for Lithium and Nickel processing

The Union Cabinet approved the Capex Support Scheme to Promote Critical Mineral Processing with a financial outlay of Rs. 2,814 crore over five years to establish domestic lithium and nickel processing plants.

• The scheme period runs from FY 2026-27 to 2030-31.
• A capital subsidy of 30% of eligible investment will be provided for setting up four processing plants.
• The maximum capital support is capped at Rs. 500 crore per lithium beneficiary and Rs. 900 crore per nickel beneficiary.
• 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, will be established.
• Beneficiaries will be selected through a two-stage process of technical qualification followed by financial bidding based on the least-cost criterion.
• Incentives will be disbursed in three tranches linked to the achievement of specified milestones.