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Cabinet nod for Rs 2,814 cr plan to support critical mineral processing

By · Via Times of India · Published by Everything Blog

In short

The program runs through fiscal year 2031 and aims to transform raw ores and intermediate products into high-purity compounds. Cobalt will also be recovered as a valuable by-product during the nickel refining process. Alongside this industrial push, the government greenlit a statistical overhaul scheme valued at Rs 4,371 crore to modernize national analytics.

Key points

  • Establishing local refining operations helps shield the domestic economy from concentrate…: Establishing local refining operations helps shield the domestic economy from concentrated global critical mineral supply chains.
  • Government capital subsidies are structured to accelerate heavy industrial investments th…: Government capital subsidies are structured to accelerate heavy industrial investments through fiscal year 2031.
  • National statistical systems will simultaneously receive a Rs 4,371 crore overhaul betwee…: National statistical systems will simultaneously receive a Rs 4,371 crore overhaul between fiscal years 2027 and 2031.

Sources checked by our analysis pipeline: 1

NEW DELHI: Cabinet Wednesday approved a Rs 2,814 crore scheme to boost domestic processing of lithium and nickel, reducing dependence on imports of critical minerals.

PM Narendra Modi said India cannot afford to depend on other countries for processing such materials. The scheme would encourage domestic investment and secure future supplies, he wrote on X.

Union ministry of mines said processing of critical minerals was concentrated in a few global locations. The scheme aims to develop domestic processing capabilities, promote value addition and reduce import dependence by supporting processing facilities.

It targets processing lithium and nickel ores or intermediary products into high-purity compounds. Cobalt is expected to be recovered as a by-product of nickel production. To be implemented until FY31, the scheme will provide a capital subsidy of 30% of eligible investment for four plants: two lithium processing plants with minimum capacity of 30,000 tonnes each and two nickel plants with minimum capacity of 50,000 tonnes each.

The support will be capped at Rs 500 crore per lithium beneficiary and Rs 900 crore per nickel beneficiary.

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