Government weighs ₹2,800 crore critical minerals scheme

The Union Cabinet is likely to consider a proposed ₹2,800 crore capex scheme for domestic processing of critical minerals, according to The Indian Express. The plan is expected to support processing of lithium and nickel ores and intermediary products into high-purity compounds. Cobalt could be recovered as a by-product of nickel production.

The proposed scheme is aimed at building domestic processing capacity for materials used in lithium-ion batteries, which supply smartphones, electric vehicles and other applications 🔋. Sources cited in the report said the programme may provide a capital subsidy of 30% of eligible investment for four processing plants. The reported focus on lithium and nickel would address a midstream gap between mineral availability and the production of battery-grade compounds.

Cabinet decision is the immediate trigger for the sector. The final outlay, subsidy eligibility, qualifying investment, plant locations and implementation timeline will determine how much of the proposal converts into actual capacity. A formal notification would also clarify whether the support covers only new facilities or includes expansions and associated refining infrastructure.

For metals-market participants, Hindustan Zinc provides a relevant market reference, although the article did not identify the company as a beneficiary. OI Charts data for 03 Nov 2026 showed the stock at ₹526.50, up 1.6% on the day, with volume of 4.3 million shares. It had gained 6.9% over five sessions but remained down 7.0% over 20 sessions and traded below its 52-week high of ₹733.00.

In derivatives, futures open interest rose 2.4% with a long build-up, while the futures price remained at a 0.9% discount to the underlying. The options market showed a put-call ratio of 0.64, with max pain at ₹520. The largest call open interest was at ₹600 and the largest put open interest at ₹500 for the 23 Nov 2026 expiry, 20 days away. These levels provide the immediate positioning map as the policy proposal moves from agenda to decision

The next developments to watch are the Cabinet outcome, the detailed scheme guidelines and any company-level announcements on processing investments. The broader read-through is for mining, metals and battery-linked manufacturing, but the article does not confirm allocations to any listed company.

Source: The Indian Express, 03 Nov 2026

Not investment advice. For informational purposes only.