New Delhi [India], February 1 (ANI): Noting that critical minerals, rare earths and permanent magnets are a very important part of the manufacturing sector today, Union Minister for Electronics and Information Technology Ashwini Vaishnaw has hailed the Union Budget’s announcement of Rare Earth Corridors to support mineral-rich states. He said the move will help the country develop a rare-earth permanent magnet manufacturing industry, driving sustained growth.
In an interview with ANI, Vaishnaw said boosting capacity for rare earths and critical minerals is a prime focus for the country.
“Critical minerals, rare earths, and permanent magnets are a very important part of our manufacturing sector today. Establishing a rare-earth permanent magnet corridor across coastal areas will help us develop a rare-earth permanent magnet manufacturing industry, which will drive sustained growth for our country,” he said.
In her Budget speech, Finance Minister Nirmala Sitharaman said the government proposes to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing.
She also said that the India Semiconductor Mission (ISM) 1.0 expanded India’s semiconductor sector capabilities, and building on this success, the government will launch ISM 2.0 to produce equipment and materials, design full-stack Indian intellectual property, and strengthen supply chains.
“We will also focus on industry-led research and training centres to develop technology and a skilled workforce. The Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of Rs 22,919 crore, already has investment commitments at double the target. We propose to increase the outlay to Rs 40,000 crore to capitalise on the momentum,” she added.
The government informed the Rajya Sabha last month that India is not reliant on China for accessing rare earth minerals present in Beach Sand Minerals (BSM), which is the principal ore of rare earths in the country.
In BSM ore, the prescribed substance monazite occurs, which is a phosphate mineral of rare earth elements containing uranium and thorium.
IREL, a public sector undertaking under the Department of Atomic Energy, produces rare earth elements in the form of high-purity rare earth oxides from rare-earth-bearing mineral monazite in India. IREL operates three locations with facilities for integrated mining and processing of mineral sands, as well as extraction and refining of rare earths.
Union Minister for Science and Technology and Earth Sciences Jitendra Singh informed the Rajya Sabha in a written reply that, for the strategic sector, a Rare Earth Permanent Magnet plant has been operationalised at Visakhapatnam for the production of Samarium Cobalt magnets.
IREL has also established mini plants for the production of lanthanum, cerium and neodymium metals at the Rare Earth and Titanium Theme Park in Bhopal as part of the development of the rare earth value chain in the country.
Additionally, IREL has set up a Rare Earth Element recycling plant at the same theme park to recover magnetic rare earths from end-of-life magnets.
The Union Cabinet has approved a scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM) with a financial outlay of Rs 7,280 crore on November 26, 2025, to establish 6,000 metric tonnes per annum of integrated REPM manufacturing capacity in the country.
Five beneficiaries are envisaged under the scheme through global competitive bidding. A transparent Least Cost System, comprising a two-envelope process — technical bid and financial bid — has been proposed.
The scheme includes a Sales-Linked Incentive of Rs 6,450 crore and a capital subsidy of Rs 750 crore for the scheme period.
Jitendra Singh informed the House that the scheme aims to promote domestic manufacturing of REPM, thereby reducing dependence on imports for critical sectors such as electric mobility, renewable energy, electronics and defence, while also facilitating employment generation and strengthening domestic value chains. (ANI)
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