New Delhi
The recent export restrictions on rare earth magnets have caused supply chain challenges, affecting industries like electronics and automobiles. However, the government informed Parliament on Friday that there are no reports of project delays or rising costs from industries in Maharashtra.
In a written reply in the Rajya Sabha, Union Minister of State for Commerce and Industry, Jitin Prasada, clarified that the Ministry has not received any specific complaints from companies in the Aurangabad-Nashik-Pune auto belt or the electronics clusters in Mumbai and Navi Mumbai regarding delays or cost hikes due to rare earth shortages.
Responding to whether a dedicated task force or a Production-Linked Incentive (PLI) scheme was being planned to reduce dependence on China for rare earths, the minister said there is currently no such proposal under consideration.
The government is, however, in talks with key stakeholders to address the disruption and support Indian importers facing supply issues.
India holds around 7.23 million tonnes (MT) of Rare Earth Oxide (REO) in monazite deposits found in coastal regions of states like Tamil Nadu, Andhra Pradesh, Kerala, Odisha, and parts of Maharashtra. An additional 1.29 MT of rare earths is found in hard rock areas in Gujarat and Rajasthan.
The Geological Survey of India has discovered 482.6 MT of rare earth resources through 34 exploration projects. Over the past decade, India exported 18 tonnes of rare earth minerals and imported none.
Rare earth elements and other critical minerals like lithium, graphite, and cobalt are vital to sectors such as electric vehicles, defence, and renewable energy, making their steady supply crucial for future development.
