Cabinet Approves ₹2,814-Crore Capex Support Scheme to Boost Domestic Lithium and Nickel Processing

Why in the News?

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the **"Capex Support Scheme to Promote Critical Mineral Processing"** with a financial outlay of **₹2,814 crore** to build domestic processing capacity for critical minerals.

Key Features / Major Points:

- Outlay & Implementation Window:

- Operates over a five-year period from **FY 2026-27 to FY 2030-31**.

- Provides a **30% capital subsidy** of eligible investment to establish four commercial processing facilities:

- **2 Lithium Units:** Minimum capacity of 30 kilotonnes (kt) each (Capped at ₹500 crore support per beneficiary).

- **2 Nickel Units:** Minimum capacity of 50 kilotonnes (kt) each (Capped at ₹900 crore support per beneficiary).

- Cobalt Recovery & Selection Mechanism:

- Facilitates **Cobalt recovery** as a key by-product during nickel extraction and processing.

- Beneficiaries selected via a two-stage process (technical qualification followed by financial least-cost bidding) and incentives released in three milestone-linked tranches.

- Strategic Relevance:

- Mitigates geopolitical supply chain concentration, supports EV mobility, Battery Energy Storage Systems (BESS), defence, and high-tech electronics.

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Static GK Facts:

- Ministry of Mines:

- Cabinet Minister: **G. Kishan Reddy** | Minister of State: **Satish Chandra Dubey**.

- Critical Minerals Framework:

- India has identified **30 critical minerals** pivotal for green transition, high-tech manufacturing, and national security.

- Amended via Mines and Minerals (Development and Regulation) Amendment Act, 2023 to allow private sector exploration.

- Prominent Lithium Discoveries in India:

- Salal-Haimana region (Reasi, Jammu & Kashmir) and Degana (Nagaur, Rajasthan).

One-Liner Quiz (All Competitive Exams):

Q: What is the total financial outlay approved for the Capex Support Scheme to promote critical mineral processing?

A: ₹2,814 Crore

Q: Which critical metal will be recovered as a major by-product during the domestic processing of nickel?

A: Cobalt

Q: What is the maximum capital subsidy cap per beneficiary for setting up a lithium processing plant under this scheme?

A: ₹500 Crore

#CriticalMinerals #LithiumProcessing #NickelProcessing #UnionCabinet #MinistryOfMines #AtmanirbharBharat #CurrentAffairs #StaticGK