**Executive Summary**
This document presents information provided by the Union Minister of State regarding India's Rare Earth Minerals (REM) sector in response to a parliamentary question. It outlines India's efforts to reduce reliance on imports, particularly from China, by developing domestic REM production and value chains, including a scheme to promote manufacturing of Sintered Rare Earth Permanent Magnet (REPM) with a financial outlay approved on November 26th, 2025.
**Key Points / Main Content**
* **Rare Earth Minerals (REM) Independence:**
* India is not reliant on China for accessing rare earth minerals from Beach Sand Minerals (BSM).
* BSM ore contains monazite, a phosphate mineral with Uranium and Thorium.
* **IREL (India) Limited:**
* IREL, a PSU under the Department of Atomic Energy, produces Rare Earth Elements in the form of high-purity rare earth oxides from RE-bearing mineral Monazite.
* IREL operates in three locations for integrated mining and mineral processing, plus one facility each for extraction and refining.
* **Development Initiatives:**
* A Rare Earth Permanent Magnet plant has been operationalized at Vizag for Samarium Cobalt magnet production.
* Mini plants for Lanthanum, Cerium, and Neodymium metals production have been established at Rare Earth & Titanium Theme Park, Bhopal.
* A Rare Earth Element recycling plant has been set up at Rare Earth Titanium Theme Park, Bhopal, to recover magnetic Rare Earths from end-of-life magnets.
* **Sintered Rare Earth Permanent Magnet (REPM) Scheme:**
* The Union Cabinet approved a scheme with a financial outlay of ₹7,280 Crore to promote REPM manufacturing, approved on November 26th, 2025.
* Aims to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity.
* Envisages five beneficiaries through global competitive bidding, using a transparent Least Cost System (LCS).
* Sales-Linked Incentive of ₹6,450 crore and Capital Subsidy of ₹750 crore are allocated.
* The scheme aims to reduce dependence on imports in sectors like electric mobility, renewable energy, electronics, and defense, while generating employment and strengthening domestic value chains.
**Impact Analysis**
**IREL (India) Limited (IREL)**
**Impact:** Enhanced role in REM production and processing, contributing to strategic self-reliance.
**Action Required:** Continue operating and expanding existing facilities, and participating in government initiatives.
**Domestic Manufacturers**
**Impact:** Potential beneficiaries of the REPM manufacturing scheme, opportunities for growth and expansion.
**Action Required:** Evaluate eligibility and participate in global competitive bidding process for the REPM scheme.
**Critical Sectors (Electric Mobility, Renewable Energy, Electronics, Defense)**
**Impact:** Reduced import dependence, improved supply chain security.
**Action Required:** Adapt sourcing strategies to prioritize domestic REPM manufacturers.
**General Public**
**Impact:** Employment generation and strengthening of domestic value chains.
**Action Required:** No direct action required.
Key Entities Referenced
IREL (India) Limited (IREL): A Public Sector Undertaking (PSU) under the Department of Atomic Energy involved in producing Rare Earth Elements.
Union Cabinet Scheme for Sintered Rare Earth Permanent Magnet (REPM) manufacturing: A scheme approved by the Union Cabinet to promote domestic manufacturing of Sintered Rare Earth Permanent Magnet (REPM) with a financial outlay of Rs. 7,280 Crore.
Rare Earth Minerals: General topic of the Parliament question regarding India's access to and processing of Rare Earth Minerals.
Department of Atomic Energy: The government department under which IREL operates, overseeing Rare Earth Element production.
Vizag: Location where a Rare Earth Permanent Magnet plant has been operationalized.
Department of Atomic Energy
PARLIAMENT QUESTION: RARE EARTH
MINERALS
प्रव तथ: 29 JAN 2026 6:00PM by PIB Delhi
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 (RE) in India. In BSM ore, the prescribed substance monazite
occurs, which is a phosphate mineral of Rare Earth Element containing Uranium and Thorium.
IREL (India) Limited (IREL), a PSU under Department of Atomic Energy produces Rare Earth Elements
in the form of high pure rare earth oxides from RE bearing mineral Monazite in India. IREL has been
operating in three locations having the facility for integrated mining and processing of mineral sands and a
facility each for extraction and refining of rare earths. To develop RE value chain in the country, following
actions have been initiated :
For strategic sector, a Rare Earth Permanent Magnet plant has been operationalized at Vizag for
production of Samarium Cobalt magnets.
IREL has established mini plants for production of Lanthanum, Cerium and Neodymium metals at Rare
Earth & Titanium Theme Park, Bhopal as part of the development of RE value chain in the country.
IREL has set up a Rare Earth Element recycling plant at Rare Earth Titanium Theme Park, Bhopal to
recover the magnetic Rare Earths from end-of life magnets.
The Union Cabinet has approved the scheme to promote manufacturing of Sintered Rare Earth Permanent
Magnet (REPM) with financial outlay of Rs. 7,280 Crore on 26th November, 2025, to establish 6,000
metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity in the country. Five
beneficiaries are envisaged under the scheme through global competitive bidding. A transparent Least
Cost System (LCS), comprising a two-envelope process i.e. technical bid and financial bid is envisaged.
The Sales-Linked Incentive of Rs. 6,450 crore & Capital Subsidy of Rs. 750 crore is allocated for the
scheme period. The scheme is aimed at promoting domestic manufacturing of REPM in the country,
thereby contributing to reduce dependence on imports for critical sectors such as electric mobility,
renewable energy, electronics and defence apart from facilitating employment generation and
strengthening of domestic value chains.
This information given by Union Minister of State (Independent Charge) for Science & Technology and
Earth Sciences, and Minister of State in the Prime Minister’s Office, Personnel, Public Grievances and
Pensions, Atomic Energy and Space, Dr. Jitendra Singh in a written reply in Rajya Sabha today.*****
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