India will begin domestic production of permanent magnets by the end of this year under a Production-Linked Incentive (PLI) scheme worth Rs 7,280 crore, Union Minister of Coal and Mines G Kishan Reddy Sir announced on Thursday, 19 February.
Speaking at the second edition of ‘Indian Critical Minerals Landscape: Foundation for a Sustainable Future – Empowering Innovation, Growth & Self-Reliance’, organised by FICCI jointly with the Ministry of Mines, Reddy said the move marks a significant step toward reducing India’s heavy dependence on imports of critical minerals and strengthening domestic value addition.
The minister further announced that four states – Andhra Pradesh, Odisha, Maharashtra and Gujarat – have been identified for establishing Critical Minerals Processing Units. These facilities are aimed at building processing capacity within the country, boosting domestic manufacturing and reducing import dependence in strategically important mineral segments.
In addition, 143 coal mines have been identified under Mine Closure Activities, which are scheduled to be completed by 2028. The initiative is designed to ensure sustainable transition, scientific mine closure practices and resource optimisation, aligning mineral development with environmental and long-term economic considerations.
Reddy emphasised that India is currently around 95 per cent dependent on imports of critical minerals, underlining the urgency of building a resilient ecosystem spanning exploration, extraction, processing, recycling and advanced manufacturing.
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He stated that work has already commenced under the National Critical Minerals Mission with an outlay of Rs 32,000 crore. According to the minister, over 4,000 critical mineral exploration activities have been initiated across the country as part of efforts to strengthen the entire value chain.
The government, he added, is operating in what he described as “Reform Express mode” to accelerate policy reforms in the sector. Measures include exemption of import duty on raw materials for critical minerals and the creation of a dedicated fund to support the industry. Support is also being extended through the National Mineral Exploration Trust.
Highlighting the research and innovation push, Reddy said nine Centres of Excellence have been identified to bolster R&D, innovation and skill development in the critical minerals space.
The summit, organised by FICCI, brought together industry leaders, global partners and policymakers to deliberate on domestic exploration, processing capabilities, advanced technologies including AI, innovative financing models and international collaboration to secure resilient supply chains.
During the event, the minister also unveiled the FICCI Portal on Global Critical Minerals Assets, a knowledge platform providing data on global mineral blocks, exploration status, ownership patterns and resource estimates. A joint FICCI-Deloitte report outlining policy recommendations and strategic pathways for strengthening India’s critical minerals ecosystem was also released.
Industry representatives at the summit stressed the importance of building integrated domestic value chains and deepening global partnerships to secure long-term mineral security as India positions itself as a key player in the global critical minerals landscape.
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