Parliament Question: Strengthening the Domestic Rare Earth Materials Supply Chain

GOVERNMENT OF INDIA DEPARTMENT OF ATOMIC ENERGY LOK SABHA STARRED QUESTION NO. 275 ANSWERED ON 11.03.2026 STRENGTHENING THE DOMESTIC RARE EARTH MATERIALS SUPPLY CHAIN *275. DR. BACHHAV SHOBHA DINESH SHRI EATALA RAJENDER Will the PRIME MINISTER be pleased to state:- (a) whether the Government has taken cognisance of the announcements in the Union Budget 2026–27 regarding strengthening the domestic rare earth materials supply chain through dedicated corridors in mineral-rich States; (b) if so, the details of the criteria and the basis on which States of Odisha, Kerala, Andhra Pradesh and Tamil Nadu have been identified for support under this initiative including the steps taken, funds sanctioned and spent thereon, State-wise; (c) the details of any inter-governmental consultations held including with the concerned State Governments before finalizing the strategy; (d) the status of any reports or assessments prepared on domestic rare earth resource potential and processing readiness; and (e) the timeline and measurable targets fixed for mining, processing, research and manufacturing of Rare Earth Permanent Magnets (REPMs) under the initiatives along with the present status of implementation of such scheme in the country? ANSWER THE MINISTER OF STATE FOR PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS AND PRIME MINISTER’S OFFICE (DR. JITENDRA SINGH) (a) to (e): A statement is laid on the Table of the House. ******Government of India Department of Atomic Energy STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. *275 DUE FOR ANSWER ON 11.03.2026 ASKED BY DR. BACHHAV SHOBHA DINESH AND SHRI EATALA RAJENDER REGARDING “STRENGTHENING THE DOMESTIC RARE EARTH MATERIALS SUPPLY CHAIN”. ---------------------------------------------------------------------------------------------------------------- (a), (b) & (c): Yes. The Union Budget 2026-27 made an announcement to support mineral- rich coastal states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth corridors to promote mining, processing, research and manufacturing. These Rare Earth Corridors are intended for developing a resilient and globally competitive rare earths ecosystem in India by enhancing production of the NdPr and Samarium oxides and fostering the domestic demand for production of RE magnets and at the same time facilitating establishment of industries in the value chain of Titanium and Zirconium etc. Subsequent to the announcement, modalities for setting up of the RE corridors are being worked out in consultation with all stakeholders including the State Governments. Presently no funds are sanctioned or spent by Government of India. (d) Atomic Minerals Directorate for Exploration and Research (AMD), a constituent unit of Department of Atomic Energy (DAE), has assessed the REE resources in the coastal / inland / riverine placer sands (in beach sand minerals) and hard rock terrains in the States of Odisha, Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, Gujarat, Rajasthan, West Bengal and Jharkhand. The current status of estimated resource of REEs by AMD is as follows: i. Approximately 7.23 million tonne Rare Earth Oxides (REO) Equivalent contained in 13.15 million tonne monazite resource, occurring in the coastal beach and teri / red sand in parts of Kerala, Tamil Nadu, Odisha, Andhra Pradesh, Maharashtra and Gujarat and in the inland alluvium in parts of Jharkhand, West Bengal and Tamil Nadu. ii. 1.29 million tonne in-situ REO in hard rock terrains of Ambadungar area, Chhota Udepur district, Gujarat and Bhatikhera and Dantala area, Balotra (erstwhile Barmer) district, Rajasthan. (e) 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. The total duration of the scheme will be 7 years from the date of award, including a 2-year gestation period for setting up an integrated REPM manufacturing facility, and 5 years for incentive disbursement on the sale of REPM. IREL(India) Ltd. on its part has committed to supply 500 TPA of NdPr Oxide to the selected bidders for magnet manufacturing under the scheme for which mining, and processing capacities exist. *****