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Mint
3 days ago
- Business
- Mint
India plans to offer grants, ease regulatory norms for rare earth processing amid China supply woes
New Delhi: India plans to introduce a range of measures including the provision of grants to private companies to boost the processing of rare earth elements as the country copes with supply constraints from China, two people with knowledge of the development said. The measures include grants—or viability gap funding (VGF)—easing of the regulatory framework and fast-tracking auctions of rare-earth mines and acquisitions to counter the curbs imposed by China on sales of rare earth magnets and minerals, they said. "The government aims to achieve a 10% share of global rare earth processing within the country in the coming years. VGF, incentives for refining and regulatory easing are part of the broader strategy to achieve that target," one person said. The Indian government and industry are exploring ways to reduce reliance on China for these elements that go into several electronic components, particularly motors that drive electric vehicles. China imposed restrictions on its global export of rare earth minerals and magnets in April amid the trade and tariff war between the US and other nations. VGF provides financial support to infrastructure projects developed under public-private partnerships that may not be commercially viable. As much as 40% of the total project cost is provided—a maximum of 20% each by the Central and state government. The amount to be provided as grants for rare earth processing is being assessed, the people said. Companies that could benefit from these grants include NMDC, Coal India, Gujarat Mineral Development Corporation, Orissa Minerals Development Company, Hindustan Zinc, Vedanta and MOIL, formerly Manganese Ore (India), an industry executive said on condition of anonymity. Also Read | Automakers urge Indian govt for diplomatic outreach to China for rare earths Another person said that policy measures for rare earth elements (REE) would be taken under the Nation Critical Mineral Mission that the Union Cabinet approved in January. However, given the urgency of the situation, measures beyond the targets of the mission may be taken up. The government is already working on an incentive scheme for recycling critical minerals including rare earth elements, with an estimated allocation of ₹1,500 crore. According to the mines ministry, this is in the final stages of approval, after which it will go to the Union Cabinet. Pivotal role Rare earths are a collection of 17 elements—scandium, yttrium and 15 lanthanides, which are: lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb) and lutetium (Lu). India imports most of its rare earth requirements. Imports rose 16.7% to 2,270 tonnes in FY24. These elements play a pivotal role in hi-tech industries, automobiles, renewable energy transition, defence systems as well as the electronics sector. 'India's imports of permanent magnets—many containing rare earth elements—nearly doubled to 53,700 tonnes in FY25 from around 28,700 tonnes the year before, according to official trade data. There is no domestic magnet production. India relies on imported magnets, mainly from China," said Rajib Maitra, a partner at Deloitte India. Considering the importance of these elements, India has categorised rare earth elements (not containing uranium and thorium) as critical/strategic minerals. This allows the Centre to auction exploration licences and composite licences to mine these minerals in the country. Previously, mining of these critical and atomic minerals was reserved only for state agencies under the Department of Atomic Energy. Also Read | India's top rare-earths producer IREL is headless amid mounting supply risks from China As per the US Geological Survey, India has the third-largest reserves of rare earth elements, at about 6.9 million tonnes, after China (44 million tonnes) and Brazil (21 million tonnes). However, there is no significant production of rare earths in India because of the lack of exploration, mining and processing facilities. China accounted for 70% of the global production in 2024, according to the USGS. "Considering the huge reserves of REEs in the country, it has immense potential to raise mining of REEs," said BK Bhatia, director-general of the Federation of Indian Minerals Industries. Currently, IREL (India) Ltd (formerly Indian Rare Earths Ltd), a company under the Department of Atomic Energy, is the only agency involved in production of rare earths from beach sand minerals. The mining of beach sand minerals was earlier prohibited for the private sector. The other source of REEs are hard rocks. Earlier this year, the ministry of mines auctioned four blocks of REEs. However, of the four blocks, only one in Uttar Pradesh is exclusively for REE and the rest are largely associated with other critical minerals. Mission mode Industry stakeholders said it is imperative to have a facilitating regulatory regime to attract the private sector, including overseas companies, to explore, mine, extract and process rare earths because developing a deep-seated or critical mineral deposit from the stage of prospecting to mining takes a minimum of 8-10 years. "Extraction and processing capabilities of REEs is a big challenge. There is a need to work on the same in mission mode by bringing synergy among R&D institutes, academia and industry for developing domestic processing technology on a commercial scale to achieve the ambitious target of 10% global REEs in the country," Bhatia said. Processing, a key part of the rare earth supply chain, is again dominated by China with its technological advancements. 'Extracting rare earth elements is only one part of the value chain; processing them into usable materials is equally critical," said Rajnish Gupta, partner, tax and economic policy group, at EY India. 'While mining is becoming more diversified globally, processing remains concentrated in a few countries, creating supply chain vulnerabilities." Also Read | China's rare earths aren't as rare as you think Gupta noted that rare earth deposits have unique chemical compositions, requiring customised processing techniques and ongoing research. Further, extraction needs optimisation and the environmental impact needs to be addressed, while specialised equipment is required. "India would need to gain access to specialised technology or develop it over time. Manpower and infrastructure issues also need to be addressed. Planning should start right away. All constraints must be examined, and production and processing need to be synchronised," Gupta said. A domestic processing industry would also be key to process and refine minerals imported through the ventures of public sector Coal India Ltd and Khanij Bidesh India Ltd, which are scouting for critical minerals and rare earth mines abroad. "We need to scale up processing capabilities for rare earth elements rapidly, for which technology is already available. The processing capabilities can be developed independent of domestic mining capacity since there was removal of import duties from critical minerals recently," said Maitra of Deloitte India. Queries sent to the ministry of mines remained unanswered until publishing time.
Hindustan Times
13-06-2025
- Business
- Hindustan Times
8th pay commission formal announcement awaited: What is fitment factor and how does it affect salary?
The 8th Pay Commission was approved by the Union Cabinet on January 16 for revising the salaries of central government employees. However despite the government approval, an official announcement is still awaited. Currently the salary structure for central employees follows the recommendations of the 7th Pay Commission which came into effect in 2016. Several government employees are still waiting for the release of the terms of Reference for 8th Pay Commission. A fitment factors points out to how much the revised salary will be on the base salary. It refers to the multiplication unit which is used for revising the base salaries and pensions of government employees. A fitment factor of 2.57 means a 157 per cent increase in salary. For the 7th pay commission, the fitment factor of 2.57 led to the salary hike from ₹7,000 to Rs. 18,000. The revision of salary depends on the fitment factor, which is a multiplier applied to current basic pay. In the current 7th Pay Commission the fitment factor was at 2.57. While the term of the 7th Pay Commission is going to end on 31 December 2025, there are no official announcement related to the 8th pay commission. Since 1947, there have been seven Central Pay Commissions. A new pay commission is set up every 10 years to introduce revisions in the salaries of Central employees and pensioners. According to reports, there could be a rise in the basic pay in Level 1 in the range of ₹18,000 to ₹51,480. While the changes for level 2, which includes lower division clerks, can be a hike to ₹56,914. For level 3 this raise could be from ₹21,700 currently to ₹62,062. This will keep going up as the Levels go higher with the Level 10, which includes Group A officers, expected to get a hike to ₹1,60,446, according to an NDTV report.
India Gazette
12-06-2025
- Business
- India Gazette
"India emerged as leading digital economy under PM Modi": Home Minister Amit Shah
New Delhi [India], June 12 (ANI): Union Home Minister Amit Shah on Thursday highlighted the achievements of the central government's digital initiatives and said that India has emerged as a leading digital economy under Prime Minister Narendra Modi's 11 years of governance. The Home Minister said that Prime Minister Narendra Modi has transformed every sector of the economy and society through the digital revolution. 'The Modi government democratised the use of technology and harnessed its power for the business sector, making Bharat a leading digital economy in the world in the 11 years of Digital India. Whether it is healthcare, education, trade, or commerce, PM Narendra Modi has transformed every sector of the economy and society through the digital revolution,' posted Shah on X. Earlier on Tuesday, Amit Shah expressed gratitude to Prime Minister Narendra Modi after the Union Cabinet approved the two multitracking projects across Indian Railways covering seven Districts in Jharkhand, Karnataka and Andhra Pradesh. In a post on X, Shah said that the projects will 'turbocharge' the growth journey of these states. 'Gratitude to PM @narendramodi Ji for approving the project of multi-tracking of railways in 7 districts across Jharkhand, Andhra Pradesh, and Karnataka. The projects will turbocharge the growth journey of these states, speeding up the prosperity of businesses and individuals and creating ample employment opportunities for the youth,' Amit Shah said. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday, approved two projects of the Ministry of Railways worth Rs 6,405 crore, with the aim to improve travel convenience, reduce logistic cost, decrease oil imports and contribute to lower CO2 emissions. The two projects covering seven Districts across the states of Jharkhand, Karnataka and Andhra Pradesh will increase the existing network of Indian Railways by about 318 km. The approved multi-tracking project will enhance connectivity to approximately. 1,408 villages, which have a population of about 28.19 lakh. (ANI)
NDTV
12-06-2025
- Business
- NDTV
"11 Years Of Digital India": Home Minister Amit Shah Praises PM Modi's Vision
New Delhi: Union Home Minister Amit Shah on Thursday highlighted the achievements of the central government's digital initiatives and said that India has emerged as a leading digital economy under Prime Minister Narendra Modi's 11 years of governance. The Home Minister said that Prime Minister Narendra Modi has transformed every sector of the economy and society through the digital revolution. "The Modi government democratised the use of technology and harnessed its power for the business sector, making Bharat a leading digital economy in the world in the 11 years of Digital India. Whether it is healthcare, education, trade, or commerce, PM Narendra Modi has transformed every sector of the economy and society through the digital revolution," posted Shah on X. Earlier on Tuesday, Amit Shah expressed gratitude to Prime Minister Narendra Modi after the Union Cabinet approved the two multitracking projects across Indian Railways covering seven Districts in Jharkhand, Karnataka and Andhra Pradesh. In a post on X, Shah said that the projects will "turbocharge" the growth journey of these states. "Gratitude to PM @narendramodi Ji for approving the project of multi-tracking of railways in 7 districts across Jharkhand, Andhra Pradesh, and Karnataka. The projects will turbocharge the growth journey of these states, speeding up the prosperity of businesses and individuals and creating ample employment opportunities for the youth," Amit Shah said. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday, approved two projects of the Ministry of Railways worth Rs 6,405 crore, with the aim to improve travel convenience, reduce logistic cost, decrease oil imports and contribute to lower CO2 emissions. The two projects covering seven Districts across the states of Jharkhand, Karnataka and Andhra Pradesh will increase the existing network of Indian Railways by about 318 km. The approved multi-tracking project will enhance connectivity to approximately. 1,408 villages, which have a population of about 28.19 lakh.
Indian Express
11-06-2025
- Business
- Indian Express
Cabinet nod for Indian Railways' line doubling projects: Freight traffic set to receive additional boost of 49 million tonnes annually
The Union Cabinet on Wednesday approved two line doubling projects of the Indian Railways, namely, the 133-km Koderma-Barkakana Doubling and the 185-km Ballari-Chikjajur Doubling, which cover a total of seven districts in Jharkhand, Karnataka and Andhra Pradesh. The total estimated cost of the projects is Rs 6,405 crore. The Koderma-Barkakana line passes through a major coal producing area of Jharkhand. Along with this, it serves as the shortest rail link between Patna and Ranchi. The cost of doubling of the line is Rs 2,063 crore. According to the Ministry of Railways, line doubling will facilitate an additional cargo of 30.4 million tonnes (mt). It will connect four districts of Jharkhand, namely, Koderma, Chatra, Hazaribagh and Ramgarh. The project will be challenging from an engineering point of view since it will involve the construction of 17 major bridges, 180 minor bridges, 42 road over bridges (ROBs) and 13 road under bridges (RUBs). The project will provide connectivity to over 900 villages, the Indian Railways said. The second project Ballari-Chikjajur line crosses Ballari and Chitradurga districts of Karnataka and Anantapur district of Andhra Pradesh. The total cost of the project is Rs 3,342 crore. According to the Indian Railways, the doubling of the rail line will facilitate the movement of additional cargo of 18.9 mt. It will cater to transport of iron ore, coking coal, finished steel, fertilisers, foodgrains, and petroleum products, among other items. The 185-km project will involve the construction of 19 stations, 29 major bridges, 230 minor bridges, 21 ROBs and 85 RUBs. The line will connect over 400 villages on the stretch. These two projects together will increase the existing network of Indian Railways by about 318 km and additional freight traffic of 49 mt per annum. Dheeraj Mishra is a Principal correspondent with The Indian Express, Business Bureau. He covers India's two key ministries- Ministry of Railways and Ministry of Road Transport & Highways. He frequently uses the Right to Information (RTI) Act for his stories, which have resulted in many impactful reports. ... Read More
