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GOVERNMENT OF INDIA
MINISTRY OF EARTH SCIENCES
RAJYA SABHA
UNSTARRED QUESTION NO. 4370
ANSWERED ON 02/04/2026
RARE EARTH RESERVES AND MAGNET MANUFACTURING
4370. SHRI YERRAM VENKATA SUBBA REDDY:
Will the Minister of EARTH SCIENCES be pleased to state:
(a) whether it is a fact that India has one of the highest reserves of rare earths;
(b) if so, the reasons for India's continued dependence on other countries instead of
emerging as a dominant player in this sector;
(c) whether Government has recently approved ₹ 7,280 crores rare earth scheme to boost
magnet output;
(d) if so, the details thereof; and
(e) the roadmap prepared to make India a global leader in magnet production?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR
MINISTRY OF SCIENCE AND TECHNOLOGY
AND EARTH SCIENCES
(DR. JITENDRA SINGH)
(a) Atomic Minerals Directorate for Exploration and Research (AMD), a constituent unit
of the Department of Atomic Energy (DAE), has established the following REE
resources in the country:
Approximately 7.23 million tonne (Mt) in-situ Total Rare Earth Oxide Equivalent
(TREO Eq.) contained in 13.15 Mt monazite [a mineral of thorium and Rare
Earths] occurring in teri, beach sands and inland alluvium in parts of Andhra
Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and
Maharashtra.
1.29 Mt in-situ REE resource (TREO Eq.) in hard rock terrains in parts of Gujarat
and Rajasthan.
(b) India is not dependent on other countries for RE minerals. However, India is dependent
for RE magnets and other related products. This is on account of:
Indian resource being significantly lean w.r.t grade (0.056%-0.058%) and it is tied
with radioactivity thus making the extraction long, complex, and expensive.
Limited mineable reserves due to CRZ regulations, Mangroves, Forest and
uncontrolled inhabitation leading to capping in production quantities. Limited industries in midstream RE value chain for manufacturing of metals,
alloys, magnets etc from high pure RE Oxides leading to lack of demand for
refined rare earths.
(c)-(d) The Union Cabinet approved the 'Scheme to Promote Manufacturing of Sintered Rare
Earth Permanent Magnet' on 26th November, 2025 and the same was notified on 15th
December, 2025. This initiative aims to establish 6,000 Metric Tons per annum
(MTPA) of sintered Rare Earth Permanent Magnet (REPM) manufacturing in India,
thereby enhancing self-reliance and positioning India as a key player in the global
REPM market.
The total financial outlay of the scheme is Rs. 7,280 crore, comprising a sales-linked
incentives of Rs. 6,450 crore on REPM sales for five (5) years and capital subsidy of
Rs. 730 crore for setting up an aggregate of 6,000 MTPA of REPM manufacturing
facilities.
Rare Earth Permanent Magnets (REPMs) are one of the most powerful magnets
available and are essential components in electric vehicles, renewable energy
technologies, high-end electronics, aerospace equipment, and defence systems. The
scheme seeks to establish end-to-end REPM manufacturing capabilities within the
country, from processing rare earth oxides, to producing metals and alloys, and finally
manufacturing finished magnets.
(e) To make India a magnet major, the Government of India has undertaken the following
initiatives:
DAE has established a Rare Earth Permanent Magnet (REPM) plant at Vizag
in Andhra Pradesh for the production of 3 tons Samarium Cobalt (SmCo)
magnets annually which are high-performance rare-earth magnets commonly
used in strategic sectors such as defence and atomic energy.
Complementing the REPM scheme, the Union Budget 2026–27 has also
announced dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh,
and Tamil Nadu.
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