India is poised to build 293,000 tonnes of recycling capacity for critical minerals under the National Critical Mineral Mission (NCMM), exceeding the mission’s targeted capacity of 270,000 tonnes per annum, according to Anupam Agnihotri, Director of the Jawaharlal Nehru Aluminium Research, Development and Design Centre (JNARDDC).

In a written response to Mayuri Phadnis of Waste & Recycling magazine, Agnihotri states that the estimate is based on the assessment of 20 applications received so far, with Uttarakhand, Uttar Pradesh, Haryana, Rajasthan, and Karnataka expected to emerge as major contributors.

“NCMM is transitioning rapidly from policy to execution,” Agnihotri noted, pointing to the ₹1,500-crore Critical Mineral Recycling Incentive Scheme, approved by the Union Cabinet in late 2025. The scheme aims to facilitate the annual recovery of around 40,000 tonnes of critical minerals, alongside the creation of dedicated recycling capacity.

The industry response to the incentive programme has been robust. The application window, open from October 2, 2025- April 1, 2026, has seen 75 entities engage with the scheme, with acknowledgement letters issued following preliminary scrutiny by JNARDDC, which is acting as the Project Management Agency (PMA). 

Technology-led push towards self-reliance

Beyond recycling incentives, India is simultaneously advancing a pipeline of technology-driven interventions to strengthen self-reliance in critical minerals, particularly through extraction from secondary resources.

Pilot projects have been initiated for the recovery of critical minerals from red mud, overburden, mine tailings, and fly ash, with nine Centres of Excellence (CoEs) identified across the country. Proposals for extraction technologies have already been submitted by the Nonferrous Materials Technology Development Centre (NFTDC), with additional submissions expected from the remaining CoEs.

Agnihotri also highlighted the role of innovation programmes in supporting the ecosystem. The recently concluded PRISM 4.0 call has awarded six startups focused on critical minerals, while the Anusandhan National Research Foundation–MAHA CRM programme is explicitly targeted at advancing extraction technologies to TRL-6 and above, bridging the gap between laboratory research and commercial deployment.

“Together, these measures—spanning waste valorisation, pilot-scale demonstrations, startup support and late-stage R&D—create a parallel supply pathway that complements recycling and significantly strengthens India’s long-term critical mineral self-reliance,” he said. 

Budget 2026: Case for duty exemptions on scrap

On the role of the upcoming Union Budget, Agnihotri said Budget 2026 should consider exempting critical mineral scrap and end-of-life batteries from import duties as a targeted, time-bound measure to accelerate domestic recycling capacity under NCMM.

“In the transition phase, domestic availability of organised scrap and end-of-life batteries remains limited. Duty exemptions help recyclers access affordable feedstock, improve plant utilisation and achieve economies of scale faster,” he said.

India had taken an important step in this direction in Budget 2025-26, which exempted basic customs duty on several critical mineral wastes and lithium-ion battery scrap. Extending and refining this approach in Budget 2026, while linking exemptions to registration under government schemes, environmental safeguards, traceability, and domestic value addition, could crowd in private investment and reduce reliance on imported refined minerals over the medium term. 

Can recycling reduce geopolitical risks?

Addressing whether recycling can realistically reduce India’s dependence on geopolitically concentrated mineral supply chains, Agnihotri said Budget 2026 could enable a coordinated package of fiscal, regulatory, and infrastructure measures.

Key interventions could include conditional nil basic customs duty on defined critical-mineral scrap, limited to NCMM-registered recyclers for a period of two to three years, alongside stronger EPR enforcement and municipal e-waste infrastructure to ensure sustained domestic feedstock availability.

Targeted support for hydrometallurgical, pyrometallurgical, and direct recycling technologies, combined with pilot-scale plants, would help achieve battery-grade outputs. On the demand side, public procurement, strategic buffers, and domestic content mandates in government-supported EV and energy programmes could provide long-term market certainty.

“These efforts, supported by skill development, cluster-based recycling parks and digitalised customs and compliance systems, can create a transparent, investment-friendly ecosystem for India’s critical mineral self-reliance,” Agnihotri said.