What Happened
- Mines Minister G. Kishan Reddy announced that India will commence production of Rare Earth Permanent Magnets (REPMs) by the end of 2026
- The government plans to set up dedicated critical mineral processing parks in Odisha, Andhra Pradesh, Maharashtra, and Gujarat, with Gujarat having already initiated work
- The Union Budget 2026-27 announced support for rare-earth corridors in Odisha, Andhra Pradesh, Kerala, and Tamil Nadu, covering mining, processing, research, and manufacturing
- India has opened 11 deep-seated mineral blocks for exploration across Telangana (3), Odisha (2), Madhya Pradesh, Uttar Pradesh, Maharashtra, and other states
- The minister emphasised that critical minerals must be processed domestically rather than exported in raw form
Static Topic Bridges
Rare Earth Permanent Magnets (REPMs) and Their Strategic Importance
Rare Earth Permanent Magnets are advanced materials made from rare earth elements (primarily neodymium, praseodymium, dysprosium, and terbium) that produce strong, persistent magnetic fields. They are indispensable components in electric vehicle motors, wind turbines, defence systems (precision-guided munitions, jet engines), consumer electronics, and MRI machines. China currently controls over 60% of global rare earth mining and approximately 90% of rare earth processing and magnet manufacturing, making supply chain diversification a strategic priority for nations worldwide.
- India's Cabinet approved a Rs 7,280 crore scheme in November 2025 to promote manufacturing of Sintered REPMs
- Target capacity: 6,000 Metric Tons Per Annum (MTPA) of integrated REPM manufacturing
- Financial structure: Rs 6,450 crore in sales-linked incentives (5 years) + Rs 750 crore capital subsidy
- Capacity allocated to five beneficiaries through global competitive bidding, up to 1,200 MTPA each
- Scheme duration: 7 years (2-year gestation + 5-year incentive period)
Connection to this news: The minister's announcement that production will begin by year-end represents the first tangible output of this scheme, marking India's entry into the REPM manufacturing value chain currently dominated by China.
National Critical Mineral Mission (NCMM)
Launched in January 2025, the National Critical Mineral Mission is a seven-year initiative (2024-25 to 2030-31) with a proposed expenditure of Rs 16,300 crore plus Rs 18,000 crore expected investment from PSUs and other stakeholders. The mission aims to secure India's supply chains for minerals essential to clean energy, defence, and advanced technology sectors.
- Ministry of Mines identified 30 critical minerals for India in 2023, including lithium, cobalt, rare earth elements, graphite, nickel, and tungsten
- 24 of these minerals included in Part D of Schedule I of MMDR Act, 1957 — Central Government has exclusive auction authority for these
- Geological Survey of India tasked with 1,200 exploration projects under the mission
- KABIL (Khanij Bidesh India Limited) — a joint venture of NALCO, HCL, and MECL — pursues overseas acquisition of strategic mineral assets (lithium in Argentina, cobalt in Congo)
Connection to this news: The critical mineral processing parks announced by the minister are a direct implementation mechanism of the NCMM, ensuring that domestically mined and imported rare earths are processed within India.
Mines and Minerals (Development and Regulation) Amendment Act, 2023
This amendment to the MMDR Act, 1957, was enacted specifically to strengthen exploration and extraction of critical minerals. It introduced three landmark changes: deregulation of six atomic minerals (lithium, beryllium, niobium, titanium, tantalum, zirconium) for private sector exploration; Central Government power to exclusively auction mineral concessions for critical minerals; and introduction of Exploration Licences (EL) to attract FDI and engage junior mining companies.
- Six minerals removed from the list of 12 atomic minerals previously restricted to state agencies
- Revenue from Central Government auctions of critical mineral blocks goes to concerned State Governments
- Exploration Licences granted through competitive bidding for deep-seated and critical minerals
- Enables reconnaissance and prospecting by private and foreign entities
Connection to this news: The 11 deep-seated mineral blocks opened for exploration across multiple states are enabled by this amendment, which removed regulatory barriers to private participation in critical mineral exploration.
Key Facts & Data
- India's REPM consumption is expected to double by 2030; currently met primarily through imports
- Rs 7,280 crore scheme approved for 6,000 MTPA REPM manufacturing capacity
- 30 critical minerals identified by Ministry of Mines (2023 list)
- National Critical Mineral Mission: Rs 16,300 crore + Rs 18,000 crore PSU investment over 7 years
- Four states for critical mineral processing parks: Odisha, Andhra Pradesh, Maharashtra, Gujarat
- Budget 2026-27 additionally supports rare-earth corridors in Kerala and Tamil Nadu
- China controls ~60% of global rare earth mining and ~90% of processing/magnet manufacturing
- 11 deep-seated mineral blocks opened for exploration across India