CAPEX Support Scheme for Critical Mineral Processing
PIB Backgrounder · Economy · Posted 05 NOV 2026 1:56PM
What happened
The Union Cabinet approved the CAPEX Support Scheme to Promote Critical Mineral Processing with an outlay of ₹2,814 crore for FY 2026-27 to FY 2030-31. The scheme provides a 30% capital subsidy for establishing two Lithium and two Nickel processing plants to reduce import dependence and boost domestic industrial capabilities.
Why it matters for UPSC
This scheme is crucial for UPSC aspirants as it highlights India's industrial policy measures to secure critical mineral supply chains, promote manufacturing self-reliance (Atmanirbhar Bharat), and support the transition to green energy technologies under the economy and governance syllabus.
Key objectives
- Approve an outlay of ₹2,814 crore for FY 2026-27 to FY 2030-31 to support domestic critical mineral processing.
- Provide a 30% capital subsidy to set up two Lithium and two Nickel processing plants.
- Select beneficiaries through a competitive two-stage process using technical qualification and least-cost financial bidding.
- Disburse incentives in three milestone-linked tranches to anchor about ₹10,000 crore of investment and reduce import dependence.