Quick answer: The Capex Support Scheme to Promote Critical Mineral Processing is a ₹2,814 crore Ministry of Mines scheme that pays a 30% capital subsidy to set up two lithium and two nickel processing plants in India. The Union Cabinet cleared it on 4 November 2026, and it will run from FY 2026-27 to FY 2030-31.
Why the Capex Support Scheme is in the news
On 4 November 2026, the Union Cabinet chaired by Prime Minister Narendra Modi approved the scheme, according to the Press Information Bureau (PIB). A day later, PIB’s research unit published an explainer on how firms will be selected and paid.
The Cabinet note explains the gap. India still depends heavily on imports for refined, high-purity forms of lithium, nickel and cobalt, because processing at home is at an early stage. Worldwide, such processing is concentrated in a few countries, which exposes buyers to price swings and export curbs. Indian projects have also faced high capital costs and limited access to technology.
Key facts about the Capex Support Scheme
- Outlay: ₹2,814 crore, fully funded from the Union Budget.
- Period: FY 2026-27 to FY 2030-31.
- Nodal ministry: Ministry of Mines.
- Support: a 30% capital subsidy on eligible investment for four plants.
- By-product: cobalt is to be recovered during nickel processing.
- Investment expected: about ₹10,000 crore.
| Item | Lithium | Nickel |
|---|---|---|
| Plants | 2 | 2 |
| Minimum capacity per plant | 30 kt | 50 kt |
| Subsidy cap per beneficiary | ₹500 crore | ₹900 crore |
| Total for the mineral | ₹1,000 crore | ₹1,800 crore |
| Output | Battery-grade products from ores and concentrates (not brines) | Class-1 nickel or battery-grade nickel sulphate |
| Capacity targeted by 2030 | 60 kt | 100 kt |
The two totals add up to ₹2,800 crore. The other ₹14 crore (0.5% of the outlay) covers administration.
How the scheme works
Selection. Bidders first clear a technical round. Qualified firms then bid, and the firm seeking the least capital support wins. Two firms will be chosen per mineral.
Payment. The subsidy comes in three instalments: 25% of the bid once a quarter of the committed capex is spent, 50% (cumulative) at the halfway mark, and the balance when the plant is commissioned. Each step also needs a set share of equity to be brought in.
Deadline. Plants should be commissioned within three years of the Letter of Award, with five years as the outer limit. Any delay beyond three years reduces the unpaid subsidy.
Oversight. A Governing Council chaired by the Secretary, Ministry of Mines, makes the final selection. A Techno-Financial Committee evaluates bids, and a Project Management Agency provides support.
Link with the National Critical Mineral Mission
The scheme sits under the National Critical Mineral Mission (NCMM), launched in January 2025 for seven years (2024-25 to 2030-31). A PIB backgrounder puts the Mission’s government outlay at ₹16,300 crore, with another ₹18,000 crore expected from PSUs and other stakeholders. It covers exploration, mining, processing, recycling and research.
- In 2023 the Ministry of Mines listed 30 critical minerals for India, including lithium, nickel, cobalt and graphite.
- After the MMDR Act amendment, the Centre alone can auction 24 of these 30.
- A ₹1,500 crore recycling scheme under the NCMM was approved on 3 September 2025.
Exam angle: how NDA, CDS and CAPF can ask this
- GK papers often test the outlay, period and ministry of new schemes: ₹2,814 crore, 30% subsidy, four plants, Ministry of Mines.
- The Cabinet note names defence and speciality steel among end users, along with electric mobility, battery storage and electronics. This makes critical minerals a supply-security topic for CDS and CAPF.
- Do not confuse the NCMM (the January 2025 umbrella mission) with this scheme (November 2026, processing plants only).
Practice MCQs
Q1. The Capex Support Scheme approved in November 2026 supports processing of:
(a) Copper and zinc (b) Lithium and nickel (c) Rare earths and graphite (d) Bauxite and iron ore
Answer: (b) — It funds two lithium and two nickel plants.
Q2. The capital subsidy offered on eligible investment is:
(a) 15% (b) 20% (c) 30% (d) 50%
Answer: (c) — PIB states 30%.
Q3. Final selection of beneficiaries is based on:
(a) Highest capacity offered (b) Lowest capex support sought (c) Earliest application (d) State-wise rotation
Answer: (b) — The least-cost bid wins after technical qualification.
Q4. The National Critical Mineral Mission was launched in:
(a) July 2023 (b) January 2025 (c) September 2025 (d) November 2026
Answer: (b) — It runs for seven years from 2024-25.
Frequently asked questions
What is the Capex Support Scheme to Promote Critical Mineral Processing?
It is a ₹2,814 crore Ministry of Mines scheme giving a 30% capital subsidy for two lithium and two nickel processing plants between FY 2026-27 and FY 2030-31.
When was the scheme approved?
The Union Cabinet approved it on 4 November 2026.
What is the maximum support for one company?
₹500 crore for a lithium beneficiary and ₹900 crore for a nickel beneficiary.
How is it linked to the National Critical Mineral Mission?
It funds the processing stage of the value chain, which the NCMM, launched in January 2025, covers from exploration to recycling.
Also read on NCA: Viability Gap Funding for battery energy storage | Monthly defence current affairs PDFs | CDS coaching in Chandigarh
Sources: PIB Cabinet release, 4 Nov 2026, PIB Explainer, 5 Nov 2026, PIB Backgrounder on NCMM, narendramodi.in on NCMM approval. Facts as reported up to 7 November 2026.
Featured image background (representative): Calistemon / Wikimedia Commons, CC BY-SA 4.0.
