**Summary:**
In response to a query regarding boosting domestic production of rare earth metals following China's export ban, the Ministry of Heavy Industries stated the following. NITI Aayog and Indian Rare Earth Limited (IREL), under the Department of Atomic Energy (DAE), have jointly prepared an incentivization framework to establish downstream industries utilizing Rare Earth Elements (REEs). IREL has also established a Rare Earth Permanent Magnet (REPM) plant to produce Samarium-Cobalt magnets from indigenous resources, specifically for use in the defence and atomic energy sectors. The government is not currently considering alternative strategies to reduce dependence on these sectors. The seven-year plan was referenced by Shri Babu Singh Kushwaha. The reply was given by the Minister of State for Heavy Industries Shri Bhupathiraju Srinivasa Varma.
Key Entities Referenced
SHRI BABU SINGH KUSHWAHA: Member of Parliament who asked the unstarred question.
MINISTRY OF HEAVY INDUSTRIES: The government ministry to which the question was addressed.
SHRI BHUPATHIRAJU SRINIVASA VARMA: The Minister of State for Heavy Industries who provided the answer.
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 (IREL): A company under the Department of Atomic Energy, involved in rare earth element processing and magnet production.
Department of Atomic Energy (DAE): The government department overseeing IREL and related rare earth element activities.
Rare Earth Permanent Magnet (REPM): A plant set up by IREL for production of SamarianCobalt magnets.
China: Country that banned export of Rare Earth Metals
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.
*******