New Delhi, 4 November 2026: The Union Cabinet chaired by Prime Minister Narendra Modi has sanctioned Rs. 'Capex Support Scheme to promote complex mineral processing' has been approved with a financial outlay of Rs 2,814 crore. Processing of complex minerals is geographically clustered and limited to certain places in the world. This leaves supply chains exposed to geopolitical disruptions, price volatility, and potential supply disruptions, posing serious threats to supply chain resilience and economic security. This matter impacts national security, economic sovereignty and timely achievement of decarbonization goals.
Currently, due to the nascent stage of quality improvement and processing infrastructure for complex minerals including lithium, nickel and cobalt, India remains largely import dependent for pure intermediate and high-purity material. Local processing capacity for complex minerals remains limited, and commercial-scale projects face challenges related to high capital requirements, limited availability of appropriate technologies and limited access to raw materials. Therefore, local processing capacity is essential to maximize value addition, achieve import substitution and establish resilient end-to-end value chains.
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Promotion of complex mineral processing
In this background, 'Capex Support Scheme for Promoting Complex Mineral Processing' has been formulated to provide targeted capital expenditure support for setting up and operating local processing facilities. The objective of the scheme is to develop local processing capabilities in India to support value addition in the country, reduce import dependence and develop the value chain. The scheme aims to process lithium and nickel ore/intermediate products into high purity compounds. Cobalt is also expected to be recovered as an intermediate product of nickel production. This scheme will support important sectors like electric mobility, battery energy storage systems, electronics, defence, specialty steel etc.
Under the proposed scheme Rs. A total financial outlay of Rs 2,814 crore is envisaged. The duration of the scheme is from the financial year 2026-27 to 2030-31. Under this scheme, adequate capital subsidy of 30% of the eligible investment will be provided for setting up four complex mineral processing plants including two Lithium Processing Plants (minimum capacity of 30 kt each) and two Nickel Processing Plants (minimum capacity of 50 kt each). The maximum capital assistance per Lithium beneficiary is Rs. Rs 500 crore and nickel per beneficiary. Will be limited to Rs 900 crore.
Beneficiaries will be selected through a two-stage process. In the first stage, applications will be evaluated for technical merit, and only technically qualified applicants will be eligible to participate in the second stage of financial bidding. For each mineral, two beneficiaries will be selected based on the minimum expenditure criteria, i.e., the lowest CAPEX assistance sought by the bidders under the scheme. Incentives will be distributed over three weeks associated with the achievement of specified milestones. The scheme is an important step towards furthering the objectives of Atmanirbhar India by supporting the development of strong local processing infrastructure and strengthening India's capabilities in the complex mineral value chain.