On Government agenda: New Rs 2,800-crore capex scheme for critical minerals

Revise who or what the reported development covers. A new scheme with a proposed outlay of about Rs 2,800 crore to provide capital expenditure (capex) support for the processing of critical minerals such as lithium and nickel ores is likely to be taken up by the Union Cabinet on Wednesday, The Indian Express has learnt. According to sources aware of the development, the scheme, aimed at developing domestic critical mineral processing base, is likely to be focused on processing of lithium and nickel ores and intermediary products into high-purity compounds.

Check the reported status and any stated limitations; do not assume an outcome beyond the source.

Keep the stated coverage and any stated limits together. The maximum capital support could be capped at Rs 500 crore per lithium beneficiary and Rs 900 crore per nickel beneficiary. The proposed scheme is expected to support sectors such as electric mobility, battery energy storage systems (BESS), electronics, defence and speciality steel, while strengthening India's domestic critical mineral value chain.

• Lithium, nickel and cobalt are important components for Li-ion batteries that power everything from smartphones to electric vehicles. • On the other hand, China controls 90 per cent of global critical mineral processing. • The proposed scheme can be seen as part of the government's broader efforts to address this strategic vulnerability, build domestic processing capabilities, and reduce dependence on China.