NEW DELHI— Despite ongoing global supply chain disruptions caused by export restrictions on key rare earth magnets, the Indian government confirmed on Friday that no cost escalation or project delays have been reported by industries in Maharashtra, including the state’s prominent auto and electronics manufacturing hubs.
In a written response to a question in the Rajya Sabha, Union Minister of State for Commerce and Industry Jitin Prasada stated that his ministry has not received any specific complaints from companies in the Aurangabad-Nashik-Pune auto corridor or the electronics clusters in Mumbai and Navi Mumbai regarding rare earth shortages affecting project timelines or budgets.
The minister acknowledged that the restrictions have led to supply bottlenecks impacting user industries such as automotive and electronics but emphasized that no formal reports of disruptions have been received from Maharashtra-based firms.
Responding to whether an inter-ministerial task force or a Production-Linked Incentive (PLI) scheme is under consideration to reduce India’s reliance on Chinese imports of rare earth materials, Prasada clarified that “presently, no such proposal is under consideration.”
However, the government is actively working with stakeholders to address the challenges posed by the export curbs imposed by some countries and to safeguard the interests of Indian importers by mitigating supply chain disruptions.
According to the government, India holds approximately 7.23 million tonnes (MT) of Rare Earth Elements Oxide (REO) within 13.15 MT of monazite—a mineral containing thorium and rare earths—found in beach sands and inland alluvium across states such as Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. Additionally, around 1.29 MT of rare earths are present in hard rock formations in Gujarat and Rajasthan.
The Geological Survey of India (GSI) has also identified and augmented 482.6 MT of rare earth ore resources across 34 exploration projects. Over the past decade, India has exported just 18 tonnes of rare earth minerals and has not imported any.
Critical minerals like lithium, graphite, cobalt, titanium, and rare earth elements are in high demand due to their strategic applications in electric vehicles, renewable energy, and defense sectors. (Source: IANS)
