The Indian government is working rapidly towards reducing dependence on China in the matter of rare earth minerals. In this series, the country’s big industrial groups Reliance, Adani and Vedanta have shown interest in developing processing facilities of rare earth minerals in Andhra Pradesh. According to sources, about 10 investors including these companies have expressed their desire to set up industries related to rare earths in the state.
Large reserves exist in Andhra Pradesh
Andhra Pradesh is considered to be one of the most important states of the country in terms of rare earth minerals. According to the government draft document, about 211 million tonnes of beach sand mineral resources are present at 16 places in the coastal areas of the state. Apart from rare earth elements, these also include other important minerals.
At the same time, according to the data of Geological Survey of India (GSI), a total of 48.26 crore tonnes of rare earth ore resources are available in the country. Despite this, India has not yet been able to develop large-scale industrial capacity for processing these minerals.
Focus on reducing dependence on China
Rare earth elements are extremely important for modern technology and green energy sector. They are used in making permanent magnets used in electric vehicle motors, wind turbines, electronic components and defense sector.
At present, China dominates the global supply chain. In such a situation, India is working on a strategy to increase mining, processing and magnet manufacturing capacity at the domestic level, so that dependence on imports can be reduced.
Target of investment of Rs 500 billion in 10 years
The Andhra Pradesh government is aiming to attract investment of Rs 500 billion (about $5.2 billion) in the rare earth and titanium sector in the next decade. For this, the state government is soon going to finalize its Rare Earth Corridor policy.
According to sources, after getting approval from the cabinet, the state government will issue tender for rare earth processing and related projects. This process may start in the next few weeks.
Investors will get special incentives
The state government is preparing to provide various incentives to attract big investors. Projects with investment of Rs 1,000 crore or more can be given capital-linked incentives and other facilities.
It is noteworthy that the Central Government has also approved a program worth Rs 7,300 crore to promote rare earth magnet manufacturing. If the proposed projects go ahead, India will not only move towards self-reliance in the rare earth sector, but will also be able to establish a strong presence in the global supply chain.
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