Capex Support Scheme for Critical Mineral Processing
Cabinet · Economy · Posted 04 NOV 2026 3:29PM
What happened
The Union Cabinet approved the 'Capex Support Scheme to Promote Critical Mineral Processing' with an outlay of Rs.2,814 crore over five years to build domestic processing infrastructure for lithium and nickel.
Why it matters for UPSC
This scheme is vital for UPSC preparation as it addresses critical mineral security, import substitution, and manufacturing growth under Atmanirbhar Bharat, relevant to the Indian Economy and industrial policy syllabus.
Key objectives
- Financial outlay of Rs.2,814 crore over five years from FY 2026-27 to 2030-31 to support critical mineral processing.
- Provides a capital subsidy of 30% of eligible investment for setting up two lithium and two nickel processing plants.
- Capping maximum capital support at Rs.500 crore per lithium beneficiary and Rs.900 crore per nickel beneficiary.
- Beneficiary selection via a two-stage process comprising technical qualification and least-cost financial bidding.