**Summary:**
In response to Lok Sabha Unstarred Question No. 303 on July 22, 2025, regarding boosting domestic production of rare earth metals, the Ministry of Heavy Industries outlines the government's strategy. NITI Aayog and Indian Rare Earth Limited (IREL), under the Department of Atomic Energy (DAE), have jointly prepared an incentivization framework to encourage the establishment of downstream industries utilizing rare earth elements. IREL has also established a Rare Earth Permanent Magnet (REPM) plant to produce Samarium-Cobalt magnets from indigenous resources, specifically catering to the defense and atomic energy sectors. The government's current approach focuses on these initiatives; therefore, alternative strategies to reduce dependence in these sectors are not under consideration at this time.
Key Entities Referenced
SHRI BABU SINGH KUSHWAHA: Member of LOK SABHA who posed the unstarred question.
MINISTRY OF HEAVY INDUSTRIES: The Indian government ministry to which the question was addressed.
NITI Aayog: A policy think tank of the Government of India involved in preparing a document on incentivizing the rare earth elements industry.
Indian Rare Earth Limited: An Indian government-owned corporation (under Department of Atomic Energy) involved in rare earth processing and setting up a Rare Earth Permanent Magnet plant.
Department of Atomic Energy: The Indian government department overseeing Indian Rare Earth Limited (IREL).
Rare Earth Permanent Magnet: A type of magnet produced by IREL for use in the defence and atomic energy sectors.
China: Country that banned the exports of rare earth metals.
SamarianCobalt magnets: Type of magnets produced from indigenous resources for use in defence atomic energy sector.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 303
ANSWERED ON 22.07.2025
BOOSTING DOMESTIC PRODUCTION OF RARE EARTH METALS
†303. SHRI BABU SINGH KUSHWAHA:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) whether India has outlined a seven-year plan to boost domestic production of rare earth
metals after China banned their exports;
(b) if so, the details of the main objectives of the scheme, timeline and implementing agencies;
(c) whether the Government proposes to formulate a dedicated policy to ensure indigenous
supplies in sectors like defence, electronics and clean energy under the said scheme; and
(d) if not, whether the Government is considering any alternative strategies to reduce dependence
on these sectors?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) to (c): NITI Aayog & Indian Rare Earth Limited (IREL) under Department of Atomic
Energy (DAE) has prepared a document on “Incentivisation framework for establishment of
Downstream industry using Rare Earth Elements”. Further, IREL under DAE has set-up a Rare
Earth Permanent Magnet (REPM) plant in the country for production of Samarian-Cobalt
magnets from indigenous resources exclusively for use in defence & atomic energy sector.
(d): Does not arise.
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