Home India Ministry of Mines Scheme Guidelines for Critical Mineral Recycling Incentive S...
Date: 2025-10-02 Category: Not Applicable State: Union Government Country: India

Scheme Guidelines for Critical Mineral Recycling Incentive Scheme

Issued by Ministry of Mines · Not Applicable

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

**Executive Summary** This document outlines the scheme guidelines for the Critical Mineral Recycling Incentive Scheme, effective September 8, 2025. The scheme aims to incentivize recycling capacity development for critical minerals in India. The scheme is open for applications for six months from the date of issue of the guidelines and will last for six financial years, starting from FY 2025-26 and ending with FY 2030-31. **Key Points / Main Content** **Eligibility and Beneficiaries** * Applicants must be companies or LLPs registered in Bharat investing in target segment goods. * Beneficiaries are classified into two groups based on Global Manufacturing Revenue (GMR) in the base year (FY 2025-26): * Group A: GMR equal to or more than Rs. 200 crores. * Group B: GMR below Rs. 200 crores. * Applicants must meet minimum capacity and investment thresholds, which differ for Group A and Group B. * Recyclers must obtain Extended Producer Responsibility (EPR) registration where applicable, in accordance with the Battery Waste Management Rules, 2022. **Incentives** * The scheme provides incentives for both capital expenditure (Capex) and operational expenditure (Opex). * Capex incentive is a percentage of eligible investment, depending on the time taken to start production. * New Unit with EC, within 18 months: 20% * New Unit without EC, within 12 months: 20% * Opex incentive is calculated on incremental sales over the base year (FY 2025-26) and is released in two installments based on the achievement of sales thresholds in 2027-28 and 2030-31. **Financial and Operational Details** * The scheme tenure is for six financial years, from FY 2025-26 to FY 2030-31. * The incentive will be provided on a reimbursement basis for capital expenditure and on the achievement of threshold incremental sales for operational expenditure. * Maximum total incentive: * Group A (GMR >= ₹200 Cr): ₹50 Crores (₹10 Crores OPEX) * Group B (GMR < ₹200 Cr): ₹25 Crores (₹5 Crores OPEX) **Application and Implementation** * Applications must be submitted online through the Ministry of Mines website. * An application fee is required, varying based on the beneficiary type (Group A: ₹20,000, Group B: ₹10,000). * The Project Management Agency (PMA) will manage the scheme, evaluate applications, and disburse incentives after approval from the Executive Committee (EC). * The Governing Council (GC) will review scheme progress. **Compliance and Reporting** * Beneficiaries must remain in commercial production for a minimum of three years from the start date. * Quarterly Review Reports (QRRs) must be submitted within 30 days of each quarter's end. * Applicants must comply with related party transaction regulations. * Applicants must provide an undertaking to refund any excess incentive disbursed if subsequent adjustments are made to RPT values. **Impact Analysis** **Recyclers of Critical Minerals** * **Impact**: Benefits from financial incentives for establishing or expanding recycling facilities. Must meet eligibility criteria, comply with scheme guidelines, and submit necessary documentation. * **Action Required**: Apply within the application window, ensure compliance with all requirements, meet capacity and investment thresholds, remain in commercial production for minimum period, submit regular reports. **Project Management Agency (PMA)** * **Impact**: Responsible for the management and operation of the scheme. * **Action Required**: Receive, appraise, and verify applications; disburse incentives; monitor progress; report to Ministry of Mines. **Executive Committee (EC)** * **Impact**: Reviews and approves or rejects applications and disbursement claims based on recommendations from PMA. * **Action Required**: Review applications, approve eligibility, and approve disbursement claims. **Ministry of Mines** * **Impact**: Oversees the scheme, ensures budgetary provisions, and may amend guidelines. * **Action Required**: Monitor progress, provide necessary budgetary provisions, and issue modifications to scheme guidelines as necessary.

Key Entities Referenced

Critical Mineral Recycling Incentive Scheme: The central subject of this document, aiming to promote recycling of critical minerals. Ministry of Mines: The primary governing body responsible for the scheme's implementation. Project Management Agency (PMA): Nodal agency responsible for operational implementation, application evaluation, and reporting of the scheme. Executive Committee (EC): Reviews applications appraised by the PMA and serves as the Competent Authority for incentive approval or rejection.
Official Source Record View Original Source →
See Full Document Text
Government of India SCHEME GUIDELINES for CRITICAL MINERAL RECYCLING | INCENTIVE SCHEME | Notified vide gazette notification No. CG-DL-E-08092025-266005 Dated September 8, 2025 GOVERNMENT OF INDIA MINISTRY OF MINESoO ON DW oO KR WwW PDB AX ee ee eekB WY = Table of Contents BACK QTOUNG is cv.cin. sccvssusessan sxsneenesacuaneesans0Gsi saeeesnsanensecanenenenenanesaene CO sananenuvasnesvesvuves 2 DeFINIIONS ooo eee ccc eeeeteesesesesesesescsvevessussessscsssvessusasasavavetsvaavavavavavereseaeeveees 2 Beneficiaries & Qualification criteria under the SCHEME ......c.cccccccscsssseeceeeseseseee 6 Indicative outlay of the SCHEME .........eeccccccscscssssesesesseseescstsevevacsesevevevevevecsvesees A Incentive Period & Tenure of the SCHEME .........ccccsccesesesecsesesestesessseseseseaveveveses 7 Eligibility Conditions for INCENtiVES ...........cccccecscscsescsessscsescsetecssseseseseevavseseseeeses 8 Methodology for Capex and Opex Incentive Allocation ........c.ccccccccscscseecesseeeee 11 Application Procedure and evaluations ..........cccccccccesssseseeesesesescsssseavscseevseses 16 Institutional MECHANISM... ceceeeeseeeseseseseeescssutssvsvsvstscicvsvavavssatsesavavacsnavseses Disbursement of Incentives Related Party Transactions (RPT) Review of Performance .........cccccscssesscssescescescsecerseevsetsessvassatsasascateasvsteaseseeses 22 Request for clarification ..........cccccccccscccsssscccscsescsessssesecsevsssvetitaesevavstsesevavevsesees 22 Residual Conditions .......ccccccccccccccccsccssescesessevsescsscsecsecseeseesecsesseeseeesesevsseeseaes 22 Page 1 of 54Government of India Ministry of Mines Economic Section Dated: 02.10.2025 Guidelines for Operation of the Incentive Scheme for Promotion of Critical Minerals Recycling Background 1.1 The incentive scheme for promotion of Critical Mineral Recycling (hereinafter referred to as ‘Scheme’) was notified vide gazette notification no CG-DL-E- 08092025-266005 dated 08 September 2025. 1:2 In pursuance of para 10.6 of the said gazette notification, the scheme guidelines are to be laid down for the effective operation and smooth implementation of the Scheme. 1.3 The guidelines have been prepared after detailed consultation with industry and other relevant stakeholders. 1.4 Any modifications or amendments to these Scheme guidelines shall be issued by the Ministry of Mines, as deemed necessary Definitions 2.1 Applicant: An applicant shall be either a company registered in Bharat under the Companies Act, 2013 (erstwhile Companies Act, 1956) or a Limited Liability Partnership (LLP) registered under Limited Liability Partnership Act, 2008. Such an applicant should be investing in the production of target segment goods in Bharat and applying for the Scheme. 2.2 Application: Application means the form submitted by an applicant in the prescribed format on the online portal, along with supporting documents and application fee. 2.3 Application Window: It is the time period allowed for filing the application under the scheme. 2.4 Base Year: For computation of turnover linked incentive for Opex subsidy, FY 2025-26 shall be the base year for the calculation of incremental sales. 2.5 Beneficial owner: For the purposes of this Scheme, “Beneficial Owner” shall mean any individual, who, directly or indirectly, whether as a registered member in the company’s records or otherwise, holds more than fifty percent (50%) of the ownership interest, voting rights, or controlling interest in the Page 2 of 54applicant entity or its subsidiaries/ SPVs. This definition shall include both (a) registered members of the company as reflected in the register of members, and (b) individuals or entities having ultimate beneficial interest as defined under Section 89(10) and Section 90 of the Companies Act, 2013 and the Companies (Significant Beneficial Owners) Rules, 2018. 2.6 Capital Expenditure/ Investment: The capital investment made by an applicant as per clause 6.2 for recycling of critical minerals in Bharat. 2:1 Chartered Engineer (CE): An engineer with corporate membership of the Institution of Engineers (India) and Chartered Engineer (India) certificate issued by Institution of Engineers (India). 2.8 Commercial Production: It shall mean compliance with the following milestones 2.8.1 The project has started the production of target critical minerals under the scheme. 2.8.2 CE certifies the installed capacity and commencement of production of target critical minerals for commercial use. 2.8.3. Statutory Auditor certifies the commencement of production for sale and capitalisation of assets in books of accounts of applicant. 2.9 Competent Authority: Competent Authority under the scheme shall be as defined in Clause 9.4 of the scheme guidelines. 2.10 Cumulative Investment: Investment made by an applicant from date of Scheme Notification, duly verified by project management agency (PMA). 2.11 Date of Acknowledgement: The date on which acknowledgement is issued to the applicant by the PMA after initial scrutiny of the application. Acknowledgement of an application shall not be construed as being eligible under the scheme. 2.12 Critical Minerals: Set of naturally occurring elements and compounds that have diverse irreplaceable industrial applications but confront supply-related vulnerabilities either in the form of their limited geographic occurrences or sourcing challenges. For the purpose of this Scheme, only those minerals specified in Annexure-1 shall be treated as “Critical Minerals” eligible for incentive support. 2.13 Critical Mineral Recycling (CMR): CMR shall refer to the recycling of e-waste, Lithium-lon Batteries (LIB) and other scrap (i.e., other than e-waste and LIB) and production of Critical Minerals and their eligible compounds. 2.14 Financial Year: Financial Year (FY) begins on the 1st of April of a year and ends on 31st March of the following year. Page 3 of 542.15 Force Majeure: Extraordinary events or circumstances beyond human control such as an event described as an act of god (like a natural calamity) or events such as a war, strike, public health emergency, riots, crimes (but not including negligence or wrong-doing, predictable/ seasonal rain and any other events specifically excluded). 2.16 Governing Council (GC): Governing Council shall be an inter-ministerial council under the chairmanship of Secretary, Ministry of Mines (MoM) as per clause 9.3. 2.17 Group Company/ Companies: As per FDI policy circular of 2020, Group company/ companies shall mean two or more enterprises which, directly or indirectly, are in position to: 2.17.1 Exercise twenty-six percent (26%) Or more voting rights in other enterprise; or 2.17.2 Appoint more than fifty percent (50%) of members of board directors in the other enterprise. 2.18 Extractive Metallurgy: It shall be referred to the Critical Mineral Recycling using technologies such as Pyro Metallurgy, Hydro Metallurgy etc. 2.19 Self-Reliant: It refers to the critical mineral production which are domestically manufactured either by the applicant or by any other domestic manufacturer from whom the applicant procures. 2.20 Manufacturing: According to Central Goods and Service Tax (CGST) Act, 2017, manufacturing shall mean processing of raw material or input in any manner that results in the emergence of a new product having a distinct name, character and use. The term "manufacturer" shall be construed accordingly. 2.21 Net Incremental Sales: It is the difference between net sales of critical minerals produced in the incentive claim period and the base year. 2.22 Net Sales: Sales, net of credit notes (raised for any purpose), discounts (including but not limited to cash, volume, turnover, target or for any other purpose), any other adjustments/refunds to customers against sales consideration, applicable taxes, pertaining to advertisement and sales promotion, and brand royalty. 2.23 Project/Unit: A project/ unit shall be a recycling unit(s), which an applicant intends to manufacture the target critical minerals under the scheme. It can be a greenfield project i.e. a new business unit or brownfield project i.e. expansion of capacity/ modernization and/ or diversification of an existing unit. 2.24 Project Management Agency (PMA): Any entity appointed by MoM to act on its behalf for purposes mentioned in clause 9.1. Page 4 of 542.25 Promoter: The term promoter shall be construed as defined u/s section 2(69) of Companies Act, 2013. The promoter means a person — (a) who has been named as such in a prospectus or is identified by the company in the annual return referred to in section 92 Companies Act (2013); or (b) who has control over the affairs of the company, directly indirectly whether as a shareholder, director or otherwise; or (c) in accordance with Whose advice, directions or instructions the Board of Directors of the company is accustomed to act: provided that nothing in sub-clause (c) shall apply to a person who is acting merely in a professional capacity; 2.26 Related Party/ Parties: The term ‘related party’ shall be defined in Accounting Standard-18: Related Party Disclosures or Indian Accounting Standard (Ind- AS)-24 Related Party Disclosure, as may be applicable to the applicant, as notified by Ministry of Corporate Affairs or any other appropriate authority from time to time. 2.27 Successor-in-Interest: Successor-in-interest shall mean the new or re- organized entity formed after the merger, demerger, acquisition, transfer of business or significant change in ownership of an applicant. 2.28 Target Segment: The target segments refer to the identified critical mineral resources under the scheme that are eligible for recycling incentives. The target segments covered under the scheme shall be as follows Target Segment Eligible scraps Scrap of different advanced chemistry cell (ACC) mixes Spent LIB (Lithium- of LIB like lithium iron phosphate (LFP), lithium nickel ion Batteries) manganese cobalt oxide (NMC), lithium cobalt oxide (LCO), etc. e-waste as defined in the E-Waste (Management) Rules, E-waste 2022, in section 3(1)(I) and in Schedule | to the rules that lists out categories of electrical and electronic equipment Permanent magnets from wind turbines, EVs, medical Other waste (wastes | equipment etc.; catalytic converters in end-of-life other than e-waste & | vehicles, spent catalysts from pharma, petrochemical spent LIB) industries, etc.; special / super alloy scraps containing critical minerals, etc. Page 5 of 54Beneficiaries & Qualification criteria under the scheme 3.1 Eligible & Target beneficiaries 3.1.1 The target beneficiary of this scheme will be the recyclers of secondary products recovering and extracting critical minerals registered in India. 3.1.2 The target beneficiaries will be classified into two groups on the basis of their Global Manufacturing Revenue (GMR) i.e. the total revenue earned by a company including its holding company (in case of the company being a subsidiary) or subsidiary companies (in case of the company being a holding company). The criteria for grouping are given below: # | Group Criteria (GMR of applicants in base Recycler type year) Large, 1. A |Equal to or more than Rs. 200 crores Established Small, new 2. B_ |Below Rs. 200 crores (including start- up) 3.1.3 If a company follows the calendar year as its accounting year, the revenue shall be calculated and submitted by the applicant on a financial year basis. 3.1.4 The applicant shall submit a self-certified statement of consolidated global manufacturing revenue for FY 2024-25. 3.2 General qualification criteria 3.2.1 An applicant making investment for greenfield or brownfield recycling facilities for recovery and extraction of critical minerals from eligible scrap sources (target segments in clause 2.28) shall be eligible. 3.2.2 If an applicant has foreign direct investment (FDI), it must comply with FDI Policy Circular 2020 (as amended from time to time) issued by DPIIT, Ministry of Commerce and Industry, Government of India. A foreign owned company, should be registered in India to be eligible under this scheme 3.2.3 Feedstock sourcing, whether domestic or imported, must comply with extant laws, rules and regulations. 3.2.4 Special Purpose Vehicles (SPVs), subsidiaries, or group companies promoted by the same parent entity shall be permitted to apply individually under this Scheme, and the parent company’s Global Page 6 of 54Manufacturing Revenue (GMR) may be considered for eligibility Classification of such SPVs/ subsidiaries, subject always to the ceilings in Clause 7.3. Indicative outlay of the scheme 4.1 The scheme will incentivize the development of recycling capacity for separation and extraction of critical minerals in the country. Accordingly, the scheme will incentivize various recycling systems, with indicative outlay arrived based on average investment cost and recycling capacity addition estimated: # Type of recycling Indicative Outlay (= crore) 1. {Lithium-ion Battery (LIB) recycling 700 2. |E-waste recycling 650 3. |Other recycling 135 4.2 The target beneficiaries are classified into two groups and indicative outlay allocation is given below: # |Beneficiary Group Indicative Outlay (= crore) 1. |GroupA 990 2. |Group B 495 Note: The allocation among the scheme components - whether recycling system-wise or target beneficiary-wise — is indicative of a desired allocation. However, outlay unspent on any particular component will be deployed to other components as per need. 4.3 The incentive under the scheme shall be provided on a reimbursement basis for capital expenditure and on the achievement of threshold incremental sales for operational expenditure (if opted) Incentive Period & Tenure of the scheme 5.1 The tenure of the Scheme shall be six (6) financial years, starting from FY 2025-26 and ending with FY 2030-31. 5.2 The Scheme shall initially be open for submission of applications for a period of six (6) months from the date of issue of Scheme guidelines. Page 7 of 545.3 Applications received under the Scheme will be appraised on an ongoing basis. 5.4 The Ministry of Mines may invite further applications as and when required during the tenure of the Scheme. Eligibility Conditions for Incentives 6.1 General eligibility 6.1.1 The applicant shall meet the minimum threshold criteria with respect to capacity and investment as specified below. ———— Capacity threshold | Minimum investment y'yp (in KTPA) threshold (2 crores) Group A 10 100 Group B 5 25 Note: For the purpose of determining eligibility under Clause 6.1.1, the prescribed capacity thresholds of 10,000 TPA (Group A) and 5,000 TPA (Group B) shall be reckoned with reference to the total annual input tonnage of eligible scrap / waste streams as defined under this Scheme. For avoidance of doubt, the input tonnage shall be considered as the gross weight (on dry- basis) of spent lithium-ion batteries, e-waste, catalytic converters, permanent magnets, alloy scraps, and other eligible waste streams, as the case may be. 6.1.2 Only entities that recycle eligible waste streams and undertake extraction of critical minerals through eligible processes, such as chemical processing, metallurgical extraction, R3 and R4 level recycling of LIB scrap, or other advanced technologies including hydrometallurgy, pyrometallurgy, electrometallurgy etc., shall be eligible under this Scheme. Entities engaged, or intending to engage, solely in collection, dismantling, shredding, crushing, or sorting operations (for example, units producing only black mass from LIBs without further extraction) shall not be eligible. 6.1.3 Eligibility under this Scheme shall not affect eligibility under any other scheme of the Government of India and vice versa. However, the same investment/ sales shall not be claimed under more than one scheme. Applicants shall provide a management undertaking in this regard. Recyclers handling waste streams that are covered under Extended Producer Responsibility (EPR) as notified by the Central Pollution Page 8 of 54Control Board (CPCB) shall be required to obtain EPR registration and furnish proof of such registration along with their application under this Scheme. For waste streams not presently covered under EPR, no such registration shall be required. As and when CPCB notifies additional streams under EPR in future, compliance with EPR registration for such streams shall become mandatory. 6.1.5 Provision for Special Cases 6.1.5.1 In case of applicants proposing to commence operations from black mass derived from spent LIBs, the prescribed input capacity thresholds under Clause 6.1.1 shall be reduced by 50% (e.g., 10,000 / 5,000 TPA of spent LIBs = 5,000 / 2,500 TPA of black mass). 6.1.5.2 Such capacity adjustments shall be subject to recommendation by the Project Management Agency (PMA) and approval by the Executive Committee (EC). 6.1.5.3 Applicants commencing operations from black mass shall be eligible under this Scheme only if the black mass has been sourced from entities registered under the Extended Producer Responsibility (EPR) framework of CPCB, in accordance with the Battery Waste Management Rules, 2022. The applicant shall furnish documentary evidence to demonstrate such traceability of input material. 6.2 Investment 6.2.1 For the purpose of determining the investment threshold under this Scheme, Investment shall mean following: 6.2.1.1 Non-creditable taxes and duties, expenditure towards ' Transfer of Technology and royalty 6.2.1.2 Plant, machinery, equipment and associated utilities required, and related tools, spares, accessories and components thereof for recycling of target segment as per Annexure-2. 6.2.1.3 Packaging, freight/transport, insurance, erection and commissioning of plant, machinery, equipment and associated utilities. 6.2.1.4 Environmental and associated utilities such as effluent and emission treatment systems, air/water management, waste handling systems, captive power, control systems, IT/ERP infrastructure, laboratory and testing facilities essential for recycling/refining operations. Page 9 of 546.2.1.5 | Benchmarking of Capital Equipment Costs: Applicants shall ensure that the cost of capital equipment claimed under this Scheme is reasonable and in line with prevailing market/ benchmark prices. Each claim must be supported by a Chartered Engineer Certificate attesting to cost reasonableness. 6.2.1.6 In cases of over-invoicing, the PMA will apply the benchmarked cost for incentive computation. 6.2.2 The associated utilities will be capped as per CPWD schedule of rates wherever available. The applicant shall provide a statutory auditor certificate in respect of expenditure related to associated utilities. 6.2.3 Expenditure on packaging, freight, insurance, erection and commissioning shall be on actual basis and capped at 7.5% of the base investment. 6.2.4 Expenditure on in-house R&D and process development for recycling and refining of target critical minerals shall be considered eligible investment. This includes development of chemical processes, separation technologies, hydrometallurgical circuits, and related pilot set-up. 6.2.5 The applicant shall provide a statutory auditor certificate and purchase agreements in respect of the intellectual property rights (IPR), patents and copyrights. 6.2.6 The software associated with R&D shall be procured / licensed through legally valid documents. 6.2.7 Non-creditable taxes and duties, expenditure towards Transfer of Technology and royalty may be included for threshold computation but shall not be incentivized. 6.2.8 Expenditure on land and building shall not be considered as eligible investment. 6.2.9 Expenditure on consumables and raw material shall not be considered as eligible investment. 6.2.10 Procurement of used/ second-hand/ refurbished plant, machinery and equipment during the eligible time period under the scheme shall be allowed for incentives provided: 6.2.10.1 They have a minimum residual life of at least 5 years, 6.2.10.2 Proper valuation/residual life certificate is furnished by a Chartered Engineer, Page 10 of 546.2.10.3 Value considered shall be lower of depreciated value (as per Customs scale) or value assessed by Chartered Engineer. 6.2.10.4 However, refurbished equipment shall not exceed 20% of eligible investment for incentive purposes. 6.2.11 Plant, machinery, and equipment must be purchased or leased in the name of the applicant only. Leases must be financial leases under Indian Accounting Standard (Ind-AS) 116. 6.2.12 Plant, machinery and equipment should be used for recycling of scraps and recovery of critical minerals under this Scheme. 6.2.13 The date of invoice for purchase towards capital expenditure shall be considered as the date of investment, subject to capitalization in the books of account. Only investment made on or after the date of notification of scheme shall be considered eligible for incentive. 6.3 Sales 6.3.1 The applicant shall meet incremental sales thresholds for eligibility under the Opex subsidy. 6.3.2 Net sales shall be computed as per audited financial statements. Sales of recovered critical minerals in the eligible output form given in Annexure-3 with minimum specified purity shall only be considered. Date of invoice shall be considered as date of sales, subject to recognition in the books of account. 6.3.3 Sales returns, if any, shall be adjusted in the year in which the return is recognized. 6.3.4 In case an applicant is engaged in both trading and recycling, only sales from recycling/refining of critical minerals shall be considered, supported by separate accounting and statutory auditor certificate. 6.3.5 Applicant shall submit reconciliation of net sales with operational income as per books of accounts, along with GST and e-way bill reconciliation, duly certified by a statutory auditor. 6.3.6 In case of acquisition or JV with a brownfield recycling company, incremental sales shall be calculated after including the base year sales of the acquired company. Methodology for Capex and Opex Incentive Allocation Capex incentive yas Capex incentive shall be admissible on eligible investment as per clause 6.2. Incentive will be provided on expenditure incurred on equipment as per list given in Annexure — 2. Page 11 of 547.1.2 Indicative scale of capex subsidy as per time taken to start production from the date of approval of eligibility. New unit with EC Expansion Unit with EC Rae oF | Subsidy | | Within 18 months Within 12 months 20% | After her 1 16 and beffo re 24 | After 12 and before 18 months 17% | months | | | | After 24 months After 18 months 14% New unit without EC Expansion Unit without EC Rate of Subsidy Within 12 months Within 8 months 20% A¥er ‘2 aod belore 19 After 8 and before 12 months 170% || months | After 18 months After 12 months 14% 7.1.3. Capex Incentive conditions 7.1.3.1. Incentive shall be calculated on eligible capital expenditure at the applicable rate depending on production timeline (refer clause 7.1.2). 7.1.3.2 Disbursement shall be contingent upon: e Meeting the minimum investment threshold; and e Commencement of commercial production. 7.1.3.3 Applicants must furnish: e Statutory Auditor Certificate for eligible investment, capitalization of assets, and commencement of production. e Chartered Engineer Certificate for cost reasonableness, installation, and residual life of refurbished equipment (if applicable). Page 12 of 547.2 Opex Incentive 7.2.1 Incentive shall be calculated on incremental sales over the base year (FY 2025-26). 7.2.2 Opex incentive shall be released in two instalments: forty percent (40%) upon achievement of the Year-2 incremental sales threshold and sixty percent (60%) upon achievement of the Year-5 threshold, subject to auditor certification. Incentive on incremental sales over the base year (FY 2025-26) shall be provided as follows: Year Incentive of total | Incremental Sales threshold (% crore) eligible Opex (%) Group A Group B 2027-28 40% 60 30 2030-31 60% 150 75 7.2.3 Ineligibility to claim Opex incentive in a particular milestone year (Year 2) shall not restrict the applicant from claiming the remaining eligible incentive in subsequent milestone year (Year 5), provided the incremental sales thresholds specified for that year are met. 7.2.4 Applicants must provide statutory auditor certification of incremental sales, with reconciliation of GST and e-way bills. 7.3 Ceiling on incentive 7.3.1 Applicants may claim the incentive either: 7.3.1.1 entirely as Capex support, and / or 7.3.1.2 | Opex support, subject to the ceiling as indicated in the table below. Absolute Ceiling (per applicant): Beneficiary type Maximum total Of which, maximum total incentive ( Crores) | OPEX incentive (= Crores) Group A (GMR 2 2200 Cr) 50 10 Group B (GMR < 200 Cr) 25 5 7.4 The maximum incentive shall apply at two levels: 7.4.1 Per Applicant: Each individual entity may claim incentives up to the ceiling specified for its category. Page 13 of 547.4.2 Per Beneficial Owner (clause 2.5): Where multiple entities (including subsidiaries, SPVs, or group companies) are under the control of the same Beneficial Owner, the total combined incentive for all such entities shall not exceed %50 / 25 crore depending on the beneficiary type under this Scheme. 7.5 Commercial Production Condition 7.5.1 Units receiving incentive under the Scheme shall remain in commercial production for a minimum of three (3) years from the date of commencement of production, or at least one (1) year from the date of receipt of the last incentive, whichever is later. 7.6 Incentive Disbursal Mechanism (Capex and Opex) 7.6.1 For the purpose of these Guidelines, the Commencement Year shall mean the Financial Year in which commercial production is commenced. The 24 Financial Year shall mean the immediately succeeding Financial Year, the 3'4 Financial Year the one thereafter, and so on. 7.632 Capex incentive shall be disbursed in two main parts 7.6.2.1 Part 1: Initial Tranche (50% of Eligible Incentive) released upon commencement of commercial production (hereinafter referred to as the “Commencement Year’). The order of preference for release of incentive will be the commencement of production, on first-come first-serve basis. 7.6.2.2 Part 2: Capacity Utilisation-Linked Tranche (Remaining 50% of Eligible Incentive) disbursal of which shall be conditional upon achievement of cumulative capacity utilisation milestones, reckoned from the Commencement Year, as under: Milestone (from Commencement Required Capacity | Incentive Release Year as per clause 7.6.1) Utilisation Condition Release of Part-2 Latest by FY 2029-30 250% incentive 7.6.2.3 Verification of each milestone shall be supported by: a) Chartered Engineer Certificate (installation, commissioning, operational readiness), b) Statutory Auditor Certificate (capitalisation in books), and c) Production records evidencing actual operation at the respective utilisation level. Page 14 of 547.6.2.4 In case the beneficiary is not able to achieve at least 50% capacity utilization by FY 2030-31, the beneficiary shall return the Part 1 incentive with interest at the prevailing 3-year SBI MCLR/ base rate, compounded annually, for the period between disbursement and return. LD Target Segment-Specific Criteria for Eligibility of Incentive ree To be eligible for subsidy under this Scheme, entities shall ensure that the recovered critical minerals and compounds conform to the specifications laid down in Annexure-3. 7.7.2 Specifically: 7.7.2.1 A minimum metallic yield and minimum purity as indicated against each mineral or compound in Annexure-3, shall be maintained. 7.7.2.2 Incentive claims for outputs not meeting the thresholds shall not be considered for subsidy, even if other eligibility criteria are fulfilled. 7.8 The minimum number of critical minerals to be extracted, in the permissible forms specified in Annexure-3, for each eligible segment shall be as indicated in the table below: Minimum Critical a Non-Eligible Mineral Segment Eligible Processes Praceanes Extraction Requirement L3 level chemical Only dismantling, E-waste . : F recovery (extractive segregation, or Recycling . metallurgy, mechanical (PCBs, . 3 . hydrometallurgy, shredding (L1, electronic ; . pyrometallurgy, L2) without assemblies) . - advanced separation) refining 2 —if only LFP Collection, chemistry is used Spent LIB R3: Black mass to metal |sorting, as input ioe salts/metals dismantling, or Cc ‘ R4: End-to-end recycling |black mass Recycling . _ to metal salts/metals production (R2) 3 — for all ether only LIB chemistries and combinations Page 15 of 54. . 1 -— spent Renvery of critical catalysts from (wastes other diamante) sreah ying dismantling petrochemical than e-waste eligible metallurgteabor without recovery/ |industries & REE & spent LIB) ; refining magnets advanced separation processes 2 — other waste streams 7.9 Flexibility for Additional Chemistries 7.9.1 In addition to the eligible outputs specified in Annexure-3, entities may produce any other chemistry or form of critical mineral, as required by customer demand. 7.9.2 Such additional outputs shall be subject to prior intimation and approval by the Project Management Agency (PMA) to ensure conformity with the Scheme’s objectives. 7.10 Incentive Claim Procedure 7.10.1 The applicant shall submit incentive claims (Annexure-4) on the online portal, complete with all requisite documents as outlined in Annexure- 5, after commencement of commercial production. 7.10.2 The PMA may seek additional clarifications or documentation if required. 7.10.3 Detailed provisions relating to verification, eligibility, and disbursement of claims are set out under Clause 10. Application Procedure and evaluations Application format and submission 8.1.1. Applications shall be submitted on the online portal when the application window is open. 8.1.2 Applicants shall register at Ministry of Mines website, under the NCMM / Scheme category. 8.1.3 For registration, applicants may log in to the Scheme dashboard and select “Apply for Incentive Scheme”. 8.1.4 The application form prescribed under these guidelines shall be completed online, and all mandatory information and supporting documents must be uploaded in the specified formats. Page 16 of 548.1.5 A list of documents required for application is provided under Annexure-5 of these Guidelines for reference 8.2 Application Fee 8.2.1 An application fee shall be paid electronically, only through NEFT/ RTGS, to the PMA account as applicable to the beneficiary type. Proof of payment must be submitted in the Application Fee Details section. Beneficiary type Application fee (=) Group A 20,000 Group B 10,000 8.2.2 Once an eligible applicant claims subsidy after start of production, a further fee will be charged for processing of disbursement claims. Details will be intimated subsequently. 8.3 Application Window: The Scheme shall be opened initially for a period of 6 (six) months from the date of issue of Scheme guidelines. If required, applications will be invited again. 8.4 Preliminary Scrutiny for Acknowledgement 8.4.1 Applications will undergo a preliminary scrutiny based on the details, requirements and documents submitted outlined in annexure-5. 8.4.2 Action: 8.4.2.1 If complete — Acknowledgement issued (Annexure-6), application moves to detailed evaluation. 8.4.2.2 If incomplete — The applicant shall have 15 days from the date of communication by the PMA to submit the missing documents; failing which, the application may be closed. 8.4.2.3 PMAwill acknowledge the receipt of a complete / incomplete application within 60 days. 8.5 Evaluation for Eligibility 8.5.1 The applicant must submit all specified documents (outlined in Annexure-5) for eligibility under the Scheme within 90 days of acknowledgement. 8.5.2 Non-submission of the complete set of specified documents within the prescribed timeframe shall lead to disqualification of the application. 8.5.3. The PMA will evaluate the application based on the details, requirements and documents submitted. Page 17 of 548.5.4 After detailed examination of the application, the PMA will make recommendations to the Executive Committee (EC) regarding eligibility of the project within 60 days of receiving all the specified documents. 8.5.5 The EC will review and consider eligibility, or rejection, or modification of the application. 8.5.6 The eligibility letter issued under the Scheme shall, inter-alia, include the details outlined in Annexure-7. 8.6 Portal and Application ID 8.6.1 Upon successful submission, PMA will issue a unique application ID to the applicant. This ID must be used for all future communications and activities related to the scheme, including claim submissions and document uploads. 8.6.2 All post-eligibility communications, including incentive claims, document verification, and correspondence, shall be routed exclusively through the online portal / email. 8.7 The PMA shall ensure that the portal is fully functional for smooth implementation of the Scheme, including secure document submission, tracking, and reporting features. Institutional Mechanism 9.1 Project Management Agency (PMA) 9.1.1 The scheme will be implemented through a nodal agency designated as the Project Management Agency (PMA). The PMA shall be responsible for the secretarial, managerial, and operational implementation of the scheme, as well as any other responsibilities assigned by MoM. 9.1.2 The PMA shall, inter alia, perform the following functions: 9.1.3 Application Management 9.1.3.1 Receive applications via the online portal, issue acknowledgements, appraise applications, and _ verify applicant eligibility. 9.1.3.2 Assign a unique application ID for all future correspondence. Page 18 of 549.1.4 Evaluation & Recommendations 9.1.4.1 Examine applications and forward eligible ones to the Executive Committee (EC) for review. 9.1.4.2 Ensure all eligible applications meet capacity, investment, financial, and technical thresholds. 9.1.5 Incentive Disbursement 9.1.5.1 Examine disbursement claims submitted by applicants and forward them to the EC for approval. 9.1.5.2 Disbursement of incentives shall be made by the PMA only after EC approval. 9.1.5.3 Ensure total disbursement does not exceed the overall scheme outlay as well as per beneficiary ceiling. 9.1.6 Reporting & Monitoring 9.1.6.1 Submit periodic reports to the Ministry of Mines on progress, performance, and utilization of incentives. 9.1.6.2 Conduct physical verification of assets. 9.1.6.3 Submit consolidated budgetary requirements for disbursement to the Ministry of Mines on a regular basis, and the Ministry shall make the necessary budgetary provisions for release of funds under the Scheme. 9.2 Executive Committee (EC) 9.2.1 The Executive Committee (EC) will review applications appraised by PMA. 9.2.2 Chair: Officer not below the rank of Joint Secretary, MoM. 9.2.3 Composition: To be constituted and notified separately. 9.2.4 Responsibilities: 9.2.4.1 Approve eligibility of beneficiaries as recommended by PMA or rejection, or modification of applications. 9.2.4.2 Approve disbursement claims of eligible entities as per specified criteria on recommendation of PMA. 9.2.5 Post-EC Recommendation: PMA will issue the eligibility / disbursal letter, as the case may be, to the applicant with a copy to MoM. Page 19 of 549.3 Governing Council (GC) 9.3.1 The Governing Council (GC) shall periodically review scheme progress and projects. 9.3.2 Chair: Secretary, Ministry of Mines. 9.3.3 Composition: To be constituted and notified separately. 9.3.4 Responsibilities: 9.3.4.1 Review progress of Scheme implementation from time to time. 9.3.4.2 Review and suggest amendments to the Scheme guidelines, if considered necessary for effective Scheme implementation. 9.4 Competent Authority 9.4.1 The Project Management Agency (PMA) shall be responsible for evaluation of applications and incentive claims and shall place its recommendations before the Executive Committee (EC). 9.4.2 The Executive Committee (EC) shall be the Competent Authority for approval or rejection of disbursement of incentives based on PMA recommendations. 9.4.3 Upon approval by the EC, the PMA shall release the incentive funds directly to the applicant through bank transfer. 9.4.4 The Governing Council (GC) shall have a supervisory and monitoring role, and may review overall scheme implementation, issue clarifications where necessary, and advise on policy-level matters. 9.4.5 For amendments to the Scheme or its Guidelines, the Hon’ble Minister for Mines shall be the Competent Authority. 10 Disbursement of Incentives 10.1 Applicants may submit incentive claims at any time during the year, provided the eligibility thresholds have been met. Claims must be supported with statutory auditor certification and a management undertaking. 10.2 Claims based on unaudited financial statements may be submitted provisionally, subject to statutory audit certification within 60 days. 10.3 Incentive disbursement shall be contingent upon verification of the submitted documents. The PMA shall examine each claim, including sales realization, Page 20 of 54investment payments, and other supporting documents such as auditors’ certificates, bank statements, purchase invoices, and production records. 10.4 The PMA shall carry out audit of the submitted claims to verify reasonableness, conformity with guidelines, and compliance with thresholds of metal yield, purity, output form, and capacity utilisation. 10.5 Based on this audit and verification, the PMA shall make a formal recommendation to the Executive Committee (EC) regarding admissibility of the claim and the eligible disbursement amount. 10.6 Disbursement of incentives shall commence only upon approval of the EC. The PMA shall disburse the incentive in accordance with the EC’s approval and extant financial rules. 10.7 In case of ambiguity, the PMA may refer matters to the EC, whose decision shall be final. 10.8 In case of excess disbursement, the applicant shall reimburse the excess amount along with interest at the prevailing 3-year SBI MCLR/base rate, compounded annually, for the period between disbursement and repayment. 10.9 If eligibility or disbursement is found to have been obtained by misrepresentation or furnishing false information, the applicant shall refund the entire disbursed incentive with interest as per Clause 10.8, after being given an opportunity of being heard. 10.10 Before final rejection of any claim on technical or documentary grounds, the applicant shall be furnished with a consolidated list of deficiencies and given fifteen (15) days to respond and cure such deficiencies. 10.11 The PMA shall furnish quarterly reports to the Ministry of Mines on claims received, amounts disbursed, and reasons for rejection/delay. 10.12 The Executive Committee (EC) shall convene at least once every three (3) months to consider and approve disbursement claims recommended by the PMA. 11 Related Party Transactions (RPT) 11.1 The applicant shall comply with provisions of the Companies Act, 2013 and the Income Tax Act, 1961 relating to related party transactions. 11.2 For international RPT, Form 3CEB filed under the Income Tax Act shall be the reference document. For domestic RPT, the applicant shall submit a management undertaking that arm’s length pricing has been applied consistently during the Scheme tenure. The PMA may seek additional documents if required. Page 21 of 5411.3 Since assessments under the Income Tax Act and other regulatory statutes may take place after incentive claims are processed, the applicant shall provide an undertaking in the prescribed format (Annexure 8), undertaking to refund any excess incentive disbursed (along with interest as per clause 10.8 in case subsequent adjustments are made to RPT values that affect incentive eligibility. 12 Review of Performance 12.1 The Scheme shall be implemented with regular monitoring to ensure effective utilization of funds. Performance of beneficiaries shall be reviewed periodically by the PMA and EC. 12.2 All beneficiaries shall furnish Quarterly Review Reports (QRRs) within 30 days from the end of each quarter, in the prescribed format on the online portal. 13 Request for clarification 13.1 Any clarification regarding the provisions of the Scheme may be sought in writing via email at director@jnarddc.gov.in. 14 Residual Conditions 14.1 Applicants must inform the PMA of any change in shareholding pattern during the tenure of the Scheme, post update with the Registrar of Companies. 14.2 In case of successor-in-interest (merger, acquisition, or transfer), investments made by the non-approved entity prior 14.3 to such change shall not be considered. Baseline sales shall remain unchanged. Prior to disbursal of incentives, applicants must submit the following documents: 14.3.1 Management undertaking in prescribed format. 14.3.2 Agreement/Indemnity Bond confirming refund obligation in case of false or excessive claims. 14.3.3 Board Resolution affirming compliance with the Scheme Guidelines. Page 22 of 5414.4 To promote transparency and deter malpractices, all applicants must provide Integrity Pact undertakings (Annexure 9) 14.4.1 Format A: At the stage of claim submission. 14.4.2 Format B: Post-claim submission, before release of funds. No application / claim shall be processed without submission of the undertakings. 14.5 — Integrity Pact undertakings shall be signed by the applicant’s CEO/ MD / Director or an authorized signatory. 14.6 Any changes in project location during the tenure shall be notified by the applicant to the PMA, which shall in turn inform the EC and GC. Ghado Ol... (SHAKIL ALAM) Economic Adviser Ministry of Mines Tel: 011 2338 4592 E-mail: ea-mines@gov.in Page 23 of 54ACRONYMS ACC — Advanced Chemistry Cell AoA — Articles of Association CA — Chartered Accountant CE — Chartered Engineer CGST — Central Goods and Services Tax Col — Certificate of Incorporation CPCB — Central Pollution Control Board DPIIT — Department for Promotion of Industry and Internal Trade EC — Executive Committee / Environmental Clearance (context-specific; used both ways) EoL — End-of-Life EPR — Extended Producer Responsibility FY — Financial Year GC — Governing Council GMR — Global Manufacturing Revenue GST — Goods and Services Tax Ind-AS — Indian Accounting Standard IPR — Intellectual Property Rights JV — Joint Venture LCO — Lithium Cobalt Oxide LFP — Lithium Iron Phosphate LIB — Lithium-lon Battery LLP — Limited Liability Partnership MCLR — Marginal Cost of Lending Rate (SBI 3-year reference) MoA — Memorandum of Association MoM — Ministry of Mines MSME — Micro, Small & Medium Enterprises NMC — Nickel Manganese Cobalt (battery chemistry) Opex — Operational Expenditure PAT — Profit After Tax PBT — Profit Before Tax PCB — Printed Circuit Board PGM — Platinum Group of Metals/ Elements PMA — Project Management Agency PV — Photovoltaic QRR — Quarterly Review Report R1, R2, R3, R4 — Recycling levels (as per CPCB classification; only R3 and R4 are eligible) Page 24 of 54REE — Rare Earth Elements RPT — Related Party Transactions SBI — State Bank of India SPV — Special Purpose Vehicle UTR — Unique Transaction Reference (payment) Page 25 of 54Annexure-1 List of critical minerals under the ambit of the incentive scheme Antimony bearing ores Beryl and other beryllium bearing minerals Bismuth bearing ores Cadmium bearing minerals Cobalt bearing minerals Gallium bearing minerals Germanium bearing Zinc ores Glauconite Graphite 10. Indium bearing minerals 11. Lithium bearing minerals 12. Molybdenum bearing minerals 13. Nickel bearing minerals 14. Niobium bearing minerals 15. Phosphate (without uranium) 16. Platinum Group of Elements bearing minerals 17. Potash 18. REE (minerals of the “rare earths” group not containing Uranium and Thorium) 19. Rhenium bearing minerals 20. Selenium bearing minerals 21. Tantalum bearing minerals 22. Tellurium bearing minerals Page 26 of 5423. Tin bearing minerals 24. Titanium bearing minerals and ores (ilmenite, rutile and leucoxene) 25. Tungsten bearing minerals 26. Vanadium bearing minerals 27. Zirconium-/ Hafnium-bearing minerals and ores including Zircon Page 27 of 54Annexure-2 List of Equipment Equipment Purpose Crushing & grinding Primary Shredder (double Initial size reduction shaft shredders) Hydraulic Shears or used for cutting large battery modules, metal casings, Guillotine Cutters and e-waste components into smaller pieces Hammer Crusher Secondary crushing High-Speed Turbine Fine grinding Crusher Reduces material size further for fine separation or Ball Mill & Pulverizer leaching, for e.g. black mass from LIBs Breaks down shredded materials into smaller, Granulation Mill uniform granules for further processing and separation Automated The automated dismantling unit efficiently removes Dismantling/Component electronic components from EoL PCBs, enabling Removal better recovery of valuable metals Optical sorting using Near-Infrared (NIR), X-Ray Optical sorting using Near- Transmission (XRT), and Color Sorting enables Infrared (NIR) and X-Ray automated separation of materials based on Transmission (XRT) and composition and visual characteristics, enhancing the color efficiency of critical mineral recovery from mixed waste streams Utilizes high-energy laser pulses to generate micro plasma on the material surface, enabling rapid, in-line Laser-Induced Breakdown elemental analysis and precise sorting of metals and Spectroscopy (LIBS) minerals based on their atomic composition. This enhances the efficiency of critical mineral recovery by enabling selective separation of metals or minerals Page 28 of 54Utilize high-voltage electric fields to induce charge differences between conductive and non-conductive Electrostatic separators materials, enabling efficient separation of metals and plastics in e-waste recycling and recovery of critical minerals. Airflow Separator (Air Non-metal separation Classification Unit) Magnetic Separator Ferrous metal removal Eddy current separator separation of non-ferrous from non-metal Classifies and concentrates fine critical minerals (Li, Hydrocyclones Co, Ni) using water-based separation. Compresses fine metal residues or powders into Briquetting & Pelletizing briquettes or pellets for easier handling, smelting, or Machine recycling. Advanced gravity separation for recovering ultra-fine Multi-Gravity Separator metal and mineral particles from e-waste residues. Separates fine metal powders and black mass from Rotary Sieves larger fractions. Generate air bubbles to selectively float metal/plastic Flotation Cells particles. Rotating drum screens for classifying different-sized Trommel Screens particles. Used for pre-sorting battery and e-waste materials. Separates crushed material into different particle Vibrating Screens sizes for further processing Remove excess water from flotation concentrates Dewatering Screens/Filters before drying. Page 29 of 54Slurry Pumps Transport slurry between different stages of flotation. Reagent Dosing System adds flotation reagents (surfactants, collectors). Extraction of Metallic Values Smelting & Refining Furnace} Extraction of metals and refining Water Circulation System Cooling & temperature control High-Temperature Pyrolysis Breaks down organic binders and extracts valuable Furnace metals. Vacuum Distillation Unit Recovers high-purity metals through distillation. Maintains the required vacuum (~20 Pa) for Vacuum System & Pumps controlled evaporation of metals. Condensation & Collection Captures volatilized gallium and arsenic vapors, Unit preventing atmospheric release. Operates under high pressure and temperature to Hydrothermal Reactor dissolve GaAs using oxidants and phosphate buffer. pH & Oxidant Dosing Precisely controls oxidant and phosphate buffer System addition for optimal GaAs decomposition. Leaching System Dissolves target metals from waste material using Leaching Reactors acids or alkalis. Peristaltic pump is characterized by a special Peristaltic & Chemical combination of fluid handling mechanism and design Dosing Pumps flexibility for multichannel applications Page 30 of 54Filter Press / Vacuum Filtration plates, hydraulic press, filter cloth. Filtration Unit Utilizes high-frequency ultrasound waves to enhance Ultrasonic Leaching mass transfer, improve reaction kinetics, and Reactors accelerate mineral dissolution Uses microwave energy to selectively heat minerals, Microwave-Assisted improving reaction rates and reducing reagent Leaching consumption. Beneficial for selective extraction of metals from ores and e-waste Applies electrical potential to facilitate metal dissolution and enhance ion transport, leaching Electro-Leaching Reactors efficiency reducing the consumption of chemical reagents. Ideal for recovery of metals like Cu, Ni, Co, and rare earths Utilize non-volatile, non-aqueous ionic liquids as environmentally friendly solvents to selectively dissolve metals from ores, industrial residues, lonic Liquid Leaching permanent magnet scraps or electronic waste. Unlike Reactors conventional acid-based leaching, IL-based leaching reduces toxic emissions, enhances metal selectivity, and enables efficient recovery of rare earth elements (REEs) and precious metals (Au, Pt, Pd, etc.) pH Control System & pH sensors, neutralization tanks, chemical dosing. Neutralization Tank Bioreactors (Aerobic & Provides controlled conditions for bacteria/fungi to Anaerobic) leach metals from e-waste. Culture Growth & Cultivates bacterial and fungal cultures Inoculation Tanks Supplies nutrients (sulfur, iron, carbon sources) for Nutrient Dosing System microbial activity and metal solubilization. Ensures oxygen and CO, exchange for microbial Agitation & Aeration System growth and enhances metal recovery kinetics. Page 31 of 54Solvent Extraction (SX) & lon Exchange (IX) System Solvent Extraction Selectively extracts metal ions from leach solution. Columns/Mixer-Settlers Organic & Aqueous Phase Storage system Storage Tanks lon-Exchange Resin Purifies metal solutions using ion exchange resins. Columns Strip Solution Regeneration Recovers extracted metals into separate solutions. Tanks Precipitation & Crystallization Unit Precipitation Tanks (Agitated Converts dissolved metals into solid precipitates. Reactor Tanks) Filtration Unit (Vacuum Filter Separates precipitated solids from liquid. Press or Centrifuge) Drying & Calcination Removes moisture from precipitated metal salts. Furnace Rotary Evaporators Removes solvents to purify metal extracts. Electrolysis / Electro winning Recovers high-purity metals from solution via Electrowinning Cells electrolysis. Rectifier Power Supply Provides controlled DC power for metal deposition. Continuously circulate / agitate the electrolyte to Electrolyte Circulation maintain homogenous bath composition for better Pumps kinetics Cathode Stripping Machine Strip the deposited metal from cathode surface Lithium-ion Battery recycling Page 32 of 54Transports batteries in a controlled manner to the Battery Conveyor & Feeding discharge units, ensuring a steady flow and avoiding System bottlenecks. Connects batteries to a controlled resistive load to Resistive Load Bank safely discharge stored energy in a monitored and Discharge Unit controlled manner. Convert excess energy into heat while ensuring voltage drop control. Captures and neutralizes any hazardous gases Fume Extraction & released during discharge, such as fluoride vapors or Scrubbing System hydrogen fluoride (HF). After full discharge, the batteries are mechanically Battery Crushing/Shredding shredded into small fragments for easier separation System of black mass, metals, and plastics. Collects the discharged black mass (containing Black Mass Collection Unit lithium, cobalt, nickel, manganese, and graphite) for further refining and metal extraction. High temperature Pyrolysis Removes organic binders and improves recovery. Furnace Graphite Recovery Unit for Separates graphite for reuse in battery production black mass through sieving or flotation or chemical process Generates high temperatures to melt metal content Plasma Smelting Furnace and refines molten metal Reactors for lithium Convert lithium carbonate into lithium hydroxide. hydroxide production Crystallizers for lithium Forms lithium hydroxide crystals. hydroxide production Filtration Removes impurities from lithium hydroxide. General equipment Page 33 of 54facilitates the efficient transport of materials between Conveyor Belt System processing stages, ensuring smooth handling, sorting, and separation of valuable metals Scrap storage bins To store scraps of different materials Chemical storage tanks Safely stores acids, bases, and chemical reagents. Automated Control Systems Controls and monitors the entire recycling process. (SCADA/PLC) Safety Equipment (PPE, Ensure worker safety and prevent hazardous Fire Suppression, Gas incidents. Sensors) Facilitates smooth and controlled feeding of raw Vibratory feeders materials to crushers, shredders, or processing units. Prevents clogging and ensures uniform flow. Provide pressurized air for bubble generation in Air Compressors flotation cells. Pollution Abatement Pulse Dust Collection Air pollution control System Controls air pollution by capturing dust, fumes, and Dust & Gas Scrubbing toxic gases emitted from shredding, pyrolysis, or System metal recovery processes Effluent/water treatment plan Neutralization Tanks Adjusts pH and removes heavy metals Filtration System Removes suspended solids and contaminants. Concentrates and recycles process water through Evaporators steam heating & distillation setup Page 34 of 54Testing & Characterization Battery Cycler (Charge- Evaluates battery charge retention and discharge Discharge Tester) performance. Tests battery performance under extreme Thermal Chamber temperatures. Gas Analyzers (CO2, H2, Monitors toxic gas emissions during discharge and HF, etc.) black mass processing. Analyzes fluoride, chloride, and sulfate ions in lon Chromatography (IC) effluents. Total Organic Carbon (TOC) Measures organic contamination in process water. Analyzer Gas Chromatography — Detects volatile organic compounds (VOCs) from e- Mass Spectrometry (GC- waste processing. MS) Determines water content in black mass and Titrator electrolyte residues. Monitors acidity/alkalinity in leaching and precipitation pH Meter processes. Conductivity Meter (for Measures ionic strength in leach solutions. liquids) Redox Potential (ORP) Evaluates oxidation-reduction potential in solvent Meter extraction & electrowinning. Measures particle size distribution of processed black Laser Particle Size Analyzer mass and cathode powders. X-Ray Fluorescence (XRF) Rapid elemental composition analysis of metals, Analyzer alloys, and black mass. Inductively Coupled Plasma Determines trace metal concentrations in leach — Optical Emission solutions, black mass, and extracted materials. Spectroscopy (ICP-OES) Page 35 of 54Inductively Coupled Plasma Ultra-trace level metal detection, essential for rare — Mass Spectrometry (ICP- earth and precious metals analysis. MS) Scanning Electron Morphological and elemental analysis of fine metal Microscope (SEM) with EDS particles and black mass residues. X-Ray Diffraction (XRD) Identifies crystalline phases in battery cathodes, Analyzer slags, and processed materials. Determines carbon and sulfur content in recycled Carbon/Sulfur Analyzer anode materials and slags. Thermogravimetric Analyzer Studies thermal decomposition behavior (TGA/DSC) Studies lithium, nickel, cobalt, and copper electrode Electrochemical Workstation behavior. Atomic Fluorescence Detects mercury, arsenic, and heavy metal traces in Spectrometer (AFS) wastewater. Page 36 of 54Annexure-3 Eligible outputs, purity and yield - Battery Recycling Critical Mineral Compound / form Purity Lithium Lithium carbonate (LizCO3) 299% Lithium hydroxide monohydrate (LiOH.H,O) 299% Lithium chloride (LiCl) 299% Yield = 70% for 1-2 years Yield 2 80% for 3-4 years Yield = 90% for 5'* year Nickel Nickel sulphate 299% Nickel carbonate (NiCO3) 299% Nickel hydroxide (Ni (OH)2) 299% Nickel oxide (NiO / Ni,O3) 299% Pure metal 299% Yield = 90% Cobalt Cobalt sulphate 299% Cobalt carbonate (CoCO3;) 299% Cobalt hydroxide (Co (OH)2) 299% Cobalt oxide (Co30, / CoO) 299% Pure metal 299% Yield = 90% Graphite Graphite 295% Yield = 90% Page 37 of 54Eligible outputs, purity and yield - E-waste Recycling Minimum Minimum Purity Metal Allowed C ommerceiraclia l F Forms RES piely Yiield Required (%) (%) Gallium Gallium metal (6N grade), Gallium (Ga) arsenide (GaAs), Gallium nitride 290% 299% (GaN) Tantalum carbide (TaC) sponge, Traent aal m Tantalum metal powder, Tantalum |2 85 % 2 97% oxide Tin (Sn) Tin metal, Tin chloride 2 80% 299% Cobalt (Co) Cobalt metal powder, Cobalt oxide > 85% > 97% (CoO) Sedminte Cadmium metal 275% 299% (Cd) Tellurium | efturium metal > 75% > 99% (Te) Palladium | Palladium metal powder, Palladium (Pd) flakes, Palladium nanopar’ ticles 2 O80e9 2 aoY Platinum | Platinum metal powder, Platinum > 80% > 98 % (Pt) bars . Indium metal ingots, Indium Indium (In) chloride, Indium oxide => O0 9% P> Sa(s0) Selenium | selenium (Se) powder, Selenium < (Se) dioxide (SeO,2), diethyl selenide 2 809M s 2 99%° Nickel sulphate, Nickel carbonate, Nickel Nickel hydroxide, Nickel oxide, = 80% 299% Pure metal Page 38 of 54Eligible outputs, purity and yield - RE Magnets Recycling =e Minimum Minimum i Metal Allowed Commercial Forms Recovery Bony Yield (%) Required (%) Neodymium oxide, Neodymium metal, High-purity Nd alloy powder Dysprosium oxide, Dysprosium metal, Praseodymium oxide, REE Praseodymium metal Terbium Neodymium (Nd), | oxide, Terbium metal, Samarium Dysprosium (Dy), | oxide, Samarium metal > 99% Praseodymium (Pr), Terbium (Tb), Recovery of mixed rare-earth Samarium (Sm) oxides (REO) blends (e.g., Nd-Pr- Dy) will be admissible provided overall purity is 299%, yield = 80 % and the blend comprises two (2) or more rare-earth elements Eligible outputs, purity and yield — Catalytic Converter Recycling a niniunn difnimam Putt Metal Allowed Commercial Forms Recovery Required (%) y Yield (%) q : Platinum (Pt) Plati inum metal (powder, iinnggoott:s, > 90% > 99 % sponge) Palladium (Pd) | Palladium metal (powder, flakes) /2 90% 299% Rhodium (Rh) Rhodii um metal I (powder, sma ll > 85% > 99 % beads) Cerium (Ce) Cerium oxide 2 80% 299% oO Lanthanum oxide > 80% |2 99% Page 39 of 54Annexure-4 Disbursement / Incentive claim form 1. Applicant name 2. Target segment 3. Description of raw material / scrap type: [alpha-numeric] (write wastes like magnets, alloy scraps, catalytic converters 4. Targeted critical minerals to be recovered: [multiple selections form below] Ooooonon0o0o Antimony bearing ores Beryl and other beryllium bearing minerals Bismuth bearing ores Cadmium bearing minerals Cobalt bearing minerals Gallium bearing minerals Germanium bearing Zinc ores Glauconite Graphite Indium bearing minerals Lithium bearing minerals Molybdenum bearing minerals Nickel bearing minerals Niobium bearing minerals Phosphate (without uranium) Platinum Group of Elements Potash REE (minerals of the “rare earths” group not containing Uranium and Thorium) Rhenium bearing minerals Selenium bearing minerals Tantalum bearing minerals Tellurium bearing minerals Tin bearing minerals Titanium bearing minerals and ores (ilmenite, rutile and leucoxene) Tungsten bearing minerals Vanadium bearing minerals OQ — Zirconium-/ Hafnium-bearing minerals and ores including Zircon 5. Application acknowledgement date: 6. Ref no and date of issue of eligibility letter FFF 007 F707 Foon og OoOoooawdonaod Page 40 of 547. Thresholds of incremental investment and incremental sale of critical minerals produced achieved oO Yes O No 8. If yes, please upload documentation proof 9. Baseline for investment (as on 31-03-2025) 10. Baseline for sales of critical minerals covered under target segment (date shall be after the date of scheme notification): 11. Incentive sought O Capex O Opex 12.Applicable ceilings as per eligibility letter: 13. Utilisation Certificate from statutory auditor: 14. Certificates / undertakings stating / covering no deviation in eligible investment on equipment 15. Certificates from company secretary stating obtaining of all clearances 16.Certificates from statutory auditor stating / covering incremental threshold sales achievement 17.Documents / certificates from chartered engineer 18. Undertaking letter, attested on letter head as per Annexure-8 in scheme guidelines Page 41 of 54Annexure- 5 List of Documents required - Stagewise : Mandatory / Stage Documents Required Conditional Company PAN (with file upload) Mandatory GST No. (with file upload) Mandatory Registered Office & Factory/Plant Address Mandatory Geo Location of Factory/Plant Mandatory ID proof of authorized representative (Employee Mandatory card / Aadhaar / PAN / Passport) Board Resolution / Authorisation letter or Self- declaration (for Proprietorships/ . . Mandatory Partnerships/Startups) as per formats in Annexure-10 & 11 Entity type-specific documents: e Pvt Ltd/Public Ltd — Col, MoA, AoA, Shareholding Pattern e LLP — Col, LLP Agreement, Partner Application oo . Contribution (CA/CS certified) Mandatory Stage e Partnership — Partnership Deed, (based on entity Registration Certificate type) e Proprietorship — PAN of Proprietor, Udyam/MSME cert. (optional) e JV— JV Agreement, Col, MoA, AoA, Certified Shareholding Pattern Mandatory (if Audited Financial Statements (last 3 FYs, >3 years old); turnover/net worth/PBT/PAT) Conditional (if startup/ <3 yrs) Gross Manufacturing Revenue — CA/Auditor Mandatory certificate Proofs of funds received from Govt./Agencies Conditional RBI/SEBI defaulter proofs (if applicable) Conditional Page 42 of 54Mandatory (except startups CIBIL Score + File Upload with no borrowing history) Declaration of No Double-Claim (self- . Mandatory declaration) Chairman / CEO / CTO Profiles (PDFs) Mandatory Senior Management CVs (min 3, up to 5) Mandatory Undertaking on proposed capacity & investment Mandatory as per Annexure-12 Proof of land ownership (purchase deed) OR Mandatory lease deed (25 years) Target segment description (if “Others” selected) | Conditional Battery chemistry details (for LIBs) Conditional E-waste type description Conditional Proof of Application Fee Payment (UTR receipt) | Mandatory Declarations (No Double-Claim, Compliance, Mandatory Truthful Info) Detailed Project Report (DPR) with process flow, CAPEX/OPEX, recovery efficiency, M&E Mandatory balance EPR Registration/Authorization from CPCB (for . Conditional e-waste recyclers) Technology/Technical Evaluation docs Eligibility (pilot/commercial data, EHS controls, IP/TOT Mandatory Stage agreements, purity certificates) DPR Presentation Slides (for Technical Mandatory Committee) Bank/FI sanction letters, investor pledges, . Mandatory promoter equity proofs Breakup of eligible & non-eligible investments Mandatory (with proofs) Page 43 of 54Raw Material Sourcing Agreements (minimum 2 ; Mandatory years’ capacity) Purity Test Certificate (ISO 17025:2017 . Mandatory accredited lab) Metal Yield Verification docs (material balance chart, raw material invoices, sales invoices, Mandatory production sheets) Consent to Operate (CTO) document Mandatory CA-certified statement of actual expenditure ae Mandatory Disburseme | (with invoices & payment proofs) nt Stage Proof of Production Activity (utility bills, RM oo . oo. Mandatory invoices, dispatch invoices) Production logs (last 3 months — ERP or manual Mandatory logs) Actual production data sheets/reports (min 3 Mandatory critical minerals, except CC & PMs) Undertaking (Annexure-8) Mandatory Format A & B (Annexure-9) Mandatory Page 44 of 54Annexure-6 Contents of acknowledgement Acknowledgement of Application (Incentive Scheme for Promotion of Critical Mineral Recycling under NCMM) We hereby acknowledge the receipt of the application for consideration under the Incentive Scheme for Critical Mineral Recycling. The details provided by the applicant are as follows: Applicant Details oOo Name of the Applicant / Organization: Registered Address: Contact Person & Designation: o Email ID & Phone Number: ° Scheme Details o Target Segment Applied For: (e.g., Lithium-ion Battery Waste Recycling / E- waste Recycling / Catalytic Converters / Permanent Magnets / Superalloy Scrap / Others): o Beneficiary Type: (Group A/ Group B) Application Reference Number (ARN)/Unique ID: o Date of Application Submission: Operational / Technical Information o0o0000 Proposed Project Location(s): Proposed Annual Recycling Capacity (in MT): Critical Minerals Targeted for Recovery: Purity Levels Proposed: Estimated CAPEX Investment (% Cr): Estimated OPEX Investment (% Cr): Compliance & Eligibility o Eligibility Category: (As per Guidelines) Supporting Documents Submitted: 00000 Incorporation / Registration Certificate Net Worth / Financial Statements with Auditor's Certification Land ownership/lease deed Environment & Safety Compliance Documents Any other supporting documents Page 45 of 54Annexure-7 Contents of Eligibility Letter The eligibility letter issued under the Scheme shall, inter-alia, include the following details: 1. © MN Oar Name of Applicant won Project Unit Location Date of Acknowledgement and/or Eligibility Target Segment Critical minerals to be Recovered Base Year, as applicable Incentive Period / incentive schedule subject to conditions Eligibility Criteria with respect to investment and sales, as applicable Target Segment Specific Eligibility Criteria (yield, eligible outputs, etc.) 10. Yearly Projections Submitted by Applicant (Capital Expenditure, Incremental Sales,) 11.Expected OPEX Incentive 12.Any Other Information or Conditions stipulated by the Competent Authority Page 46 of 54Annexure-8 FORMAT OF UNDERTAKING (On the Letterhead of the Applicant) We, , hereby acknowledge that the incentives that may be provided to us under the Incentive Scheme for Critical Mineral Recycling, notified by the Ministry of Mines under the National Critical Minerals Mission, will be extended based on, and in reliance upon, the information submitted by us for availing the said incentives. We hereby confirm that the information furnished by us for availing the said incentives is true, correct, and complete in all respects, and that no material fact or information having an adverse bearing on our eligibility or claim under the Scheme has been concealed. We further confirm that this declaration shall remain valid on an ongoing basis and undertake to promptly apprise the Ministry of Mines of any change in the status of the information furnished by us. We further undertake that in the event of: i) any of the information furnished by us being found to be false, incorrect, or incomplete, or ii) ii) any of the undertakings and confirmations provided herein being found false, incorrect, incomplete, or breached, we shall: a) refund the entire amount of incentives availed by us along with interest calculated at the prevailing 3-year SB] MCLR/base rate, compounded annually, for the period between the date of disbursement and the date of refund; and b) accept any other directions issued by the PMA / Ministry of Mines in this regard. We acknowledge that the remedies provided in clause (a) and (b) above are not exclusive and are without prejudice to any other legal remedies available to the Ministry of Mines under applicable laws or guidelines of the Scheme. Authorized Signatory Signature: Name: Designation: Date: Seal/Stamp of Applicant Page 47 of 54Annexure-9 Integrity Pact —- Format A (To be submitted at the stage of Claim Submission under Incentive Scheme for Critical Mineral Recycling) UNDERTAKING This Integrity Pact is made and executed on this__ day of , 20, between: (i) The JNARDDC (Autonomous body under the Ministry of Mines), acting through the Ministry of Mines as Project Management Agency, hereinafter referred to as the “Authority”, AND (ii) M/s , acompany/ partnership/ LLP/ startup / JV having its registered office at : hereinafter referred to as the “Applicant/ Beneficiary’. WHEREAS 1. The Authority has issued guidelines for the Incentive Scheme for Promotion of Critical Mineral Recycling under the National Critical Mineral Mission (NCMM). 2. The Applicant/Beneficiary has applied, got approved and submitted a claim under the said scheme. 3. The Authority and the Applicant/Beneficiary agree to enter this Pact to ensure transparency, fairness, and integrity during the processing of the claim. NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 1. Commitment of the Authority o The Authority undertakes that no official of the Authority will demand, accept, or take any benefit of any kind whatsoever, directly or indirectly, from the Applicant/Beneficiary. o The Authority will ensure fair and transparent evaluation of the application/claim in accordance with the scheme guidelines. 2. Commitment of the Applicant/Beneficiary o The Applicant undertakes that it has not offered, promised, or given and shall not offer, promise, or give to any person in the Authority or otherwise any undue advantage to obtain or influence the processing of its application/claim. o The Applicant shall disclose all relevant facts and documents truly and fully. Page 48 of 54o The Applicant shall not engage in collusion, cartelization, or manipulation in the application/claim process. 3. Violations & Consequences o Any violation of this Pact by the Applicant shall entitle the Authority to reject the application/claim, forfeit any benefits, and initiate appropriate legal action. o Any violation by the Authority's officials shall be subject to disciplinary and legal action under applicable laws. 4. Duration of the Pact o This Pact shall remain valid from the date of claim submission till the final settlement of all dues under the Incentive Scheme. 5. Other Provisions o This Pact is subject to the laws of India. o The Authority and the Applicant agree to refer any unresolved issues arising out of this Pact to an Independent External Monitor (IEM) appointed by the Ministry of Mines. Signatures For and on behalf of the Applicant/Beneficiary Name: Designation: Date: Seal/Stamp: For and on behalf of the Authority (Authorized Signatory — PMA) Name: Designation: Date: Seal/Stamp: Page 49 of 54Integrity Pact - Format B (To be submitted post-claim submission and before release of funds under Incentive Scheme for Critical Mineral Recycling) UNDERTAKING (i) The JNARDDC (Autonomous body under the Ministry of Mines), acting through the Ministry of Mines as Project Management Agency, hereinafter referred to as the “Authority”, AND (ii) M/s , acompany/ partnership/ LLP/ startup / JV having its registered office at ; hereinafter referred to as the “Applicant/ Beneficiary’. WHEREAS 1. The Authority has issued guidelines for the Incentive Scheme for Critical Mineral Recycling under the National Critical Mineral Mission (NCMM). 2. The Applicant/Beneficiary has submitted its claim under the said scheme for disbursement of incentive. 3. The Authority and the Applicant/Beneficiary agree to enter this Pact to ensure integrity, transparency, and proper utilization of funds released under the scheme. NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 1. Commitment of the Authority o The Authority undertakes that no official of the Authority will demand, accept, or take any benefit of any kind whatsoever, directly or indirectly, from the Applicant/Beneficiary. o The Authority will process the claim strictly as per the guidelines of the scheme and ensure transparency in the release of funds. 2. Commitment of the Applicant/Beneficiary o The Applicant undertakes that all information furnished in the claim submission is true, complete, and correct to the best of its knowledge. o The Applicant undertakes to utilize the incentive funds released solely for the purposes stated in the application /claim and in compliance with scheme guidelines. Page 50 of 54o The Applicant shall not misrepresent facts, submit falsified documents, or misappropriate funds received under the scheme. o The Applicant agrees to maintain proper books of accounts, records, and supporting documents and to make them available for inspection/ verification by the Authority or its authorized representatives. 3. Violations & Consequences o In case of violation of this Pact or misrepresentation by the Applicant, the Authority shall have the right to: * Reject the claim and/or recover disbursed funds with interest. * Blacklist the Applicant from future participation under the scheme. Initiate legal/penal action under applicable laws. o Any violation by the Authority's officials shall be subject to disciplinary and legal action under applicable laws. 4. Duration of the Pact o This Pact shall remain valid until the complete settlement of all obligations arising from the release and utilization of funds. 5. Other Provisions o This Pact is subject to the laws of India. o Any disputes arising out of this Pact shall be referred to the Independent External Monitor (IEM) appointed by the Ministry of Mines. Signatures For and on behalf of the Applicant/Beneficiary Name: Designation: Date: Seal/Stamp: For and on behalf of the Authority (Authorized Signatory — Ministry of Mines / PMA) Name: Designation: Date: Seal/Stamp: Page 51 of 54Annexure-10 Board Resolution / Authorization (To be printed on company’s letterhead) Subject: Resolution passed at the meeting of the Board of Directors of M/s held on at : RESOLVED THAT Mr./Ms. , Designation , be and is hereby authorized to submit the application under the Incentive Scheme for Critical Mineral Recycling under NCMM on behalf of the company and to sign, execute, and submit all related documents. (Signature of Board Director) Name Designation Date Seal/Stamp (Signature of Board Member - |) Name Designation Date Seal/Stamp (Signature of Board Member - I!) Name Designation Date Seal/Stamp Page 52 of 54Annexure-11 Self-Declaration / Authorization (To be printed on company’s letterhead) Subject: Self-Declaration for participation in Incentive Scheme for Critical Mineral Recycling | hereby declare that myself Mr./Ms. , be and is hereby authorized to submit the application under the Incentive Scheme for Critical Recycling under NCMM on behalf of the company and to sign, execute, and submit all related documents. (Signature) Name Designation Date Seal/Stamp Page 53 of 54Annexure-12 Capacity & Investment Undertaking (To be printed on company’s letterhead) We, M/s , undertake that the proposed installed capacity for the project is KTPA and the total investment pledged is = crores. We understand that if we don’t meet the minimum threshold for capacity and investment as per the guidelines of Incentive Scheme for Critical Minerals Recycling under NCMM, we would need to return the subsidy amount, if any received will be returned as per the guidelines of Project Management Agency / Executive Committee / Ministry of Mines. The investment break-up and financial closure details are enclosed. Reference Board Resolution No. dated . (if applicable) (Signature of Authorized Signatory with Seal) Name Designation Date Seal/Stamp Page 54 of 54

Continue your research