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GOVERNMENT OF INDIA
MINISTRY OF MINES
RAJYA SABHA
UNSTARRED QUESTION NO. 2663
ANSWERED ON 16.03.2026
RECYCLING INCENTIVES AND COMMUNITY WELFARE
2663. SMT. KIRAN CHOUDHRY:
Will the Minister of MINES be pleased to state:
(a) whether the ₹1,500 crore incentive scheme for critical mineral recycling is now operational;
(b) if so, the details thereof;
(c) the target capacity for mineral recovery by 2030;
(d) the manner in which Government is ensuring that the District Mineral Foundation (DMF) funds
are being utilised effectively for the welfare of mining-affected communities;
(e) technologies that are being promoted to minimise the environmental footprint of deep-sea and
offshore mining operations under the Offshore Areas Mineral Rules 2026 details thereof; and
(f) manner in which Government plans to balance the fast-track production of critical minerals
with the necessary environmental and social impact assessments?
ANSWER
THE MINISTER OF STATE FOR COAL AND MINES
(SHRI SATISH CHANDRA DUBEY)
(a) to (c): The Scheme guidelines for the ₹1,500 crore incentive scheme for critical mineral
recycling were issued and the Scheme launched on 02.10.2025. Last date for submission of
applications is 01.04.2026. The target annual capacity for mineral recovery by 2030-31 is 270 kilo
tons.
(d): In order to ensure efficient utilization of District Mineral Foundation (DMF) funds for welfare
of mining-affected communities, the Central Government has issued the Pradhan Mantri Khanij
Kshetra Kalyan Yojana (PMKKKY) guidelines. As per the PMKKKY guidelines, at least 70
percent of the funds are to be spent on High Priority Sectors such as Drinking Water Supply,
Environment Preservation, Health Care, Education, etc., and up to 30 percent of the funds are to
be spent on Other Priority Sectors. The guidelines also provide demarcation of directly affected
areas (up to 15 kms from the boundary of the mines), with at least 70 percent DMF funds spent
therein, and indirectly affected areas (15 to 25 kms from the boundary of the mines).
(e): Through its Science and Technology (S&T) Programme, the Ministry of Mines provides
financial support for Research & Development (R&D) projects under R&D component and S&T–PRISM (Promotion of Research and Innovation in Startups and MSMEs) component. Thrust areas
of these components include development of new technologies for deep-sea mining.
(f): As per existing law, before execution of the mining lease including lease for critical minerals,
prospective lessees mandatorily obtain the requisite statutory clearances, including Environmental
Clearance (EC). As part of grant of EC, the prospective lessees carry out Environment Impact
Assessment (EIA) and submit the Environment Management Plan (EMP) based on scientific study
by taking into consideration likely impact of project activity on the baseline environment. The
mining lease holders implement the environmental mitigation measures as approved during grant
of EC.
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