UNION BUDGET 2025-26 PROPOSES TO FULLY EXEMPT COBALT POWDER AND WASTE, SCRAP OF LITHIUM-ION BATTERY, LEAD, ZINC AND 12 MORE CRITICAL MINERALS

As part of the 3^rd engine of investment in economy, Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman proposed multi-sectoral reforms encompassing Public Private Partnerships, support to States, Asset Monetisation Plan for 2025-2030, mining sector, and support to domestic manufacturing, while presenting the Union Budget 2025-26 in Parliament, today.

Public Private Partnership in Infrastructure

Smt. Sitharaman proposed that each infrastructure-related ministry will come up with a 3-year pipeline of projects that can be implemented in PPP mode, and States will also be encouraged to initiate and seek support from the India Infrastructure Project Development Fund (IIPDF) scheme to prepare PPP proposals.

Support to States for Infrastructure

The Union Finance Minister proposed an outlay of ₹1.5 lakh crore for the 50-year interest free loans to states for capital expenditure and incentives for reforms.

Asset Monetisation Plan 2025-30

Building on the success of the first Asset Monetisation Plan announced in 2021, Smt. Sitharaman proposed to launch the Second Plan for 2025-30 to plough back capital of ₹10 lakh crore in new projects with fine-tuning of the regulatory and fiscal measures to support the Plan.

Mining Sector Reforms

The Union Finance Minister proposed mining sector reforms, including those for minor minerals, through sharing of best practices and institution of a State Mining Index.

PM Gati Shakti Data for Private Sector

Smt. Sitharaman proposed to provide access to relevant data and maps from the PM Gati Shakti portal for furthering PPPs and assisting the private sector in project planning.

Support to Domestic Manufacturing and Value addition Critical Minerals

The Union Finance Minister proposed to fully exempt cobalt powder and waste, the scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to secure their availability for manufacturing in India and promote more jobs for India’s youth.

Exemption of critical minerals to secure domestic manufacturing inputs, alongside PPP pipelines and asset monetisation measures. The Budget mandates three year PPP project pipelines by infrastructure ministries with IIPDF support and PM Gati Shakti data access; proposes interest free, long term state loans for capital expenditure; launches the Asset Monetisation Plan 2025-30 with regulatory and fiscal calibrations; advances mining reforms including a State Mining Index; and fully exempts cobalt powder and waste, lithium ion battery scrap, lead, zinc and additional critical minerals to secure domestic manufacturing inputs.