Ahmedabad, November 27
Shares of Gujarat Mineral Development Corporation (GMDC) jumped nearly 9% following the government’s approval of a major incentive scheme to promote domestic rare-earth permanent magnet (REPM) manufacturing. The scheme, with a financial outlay of ₹7,280 crore, aims to develop 6,000 MTPA of REPM capacity, crucial for EVs, renewable energy, electronics, and defence applications.
GMDC, one of India’s largest state-owned mining enterprises, is expected to benefit directly from this initiative. With its experience in mineral extraction, the company can play a pivotal role in supplying critical minerals for domestic magnet production. The scheme is a strategic move to reduce India’s reliance on imports, particularly from China, for key components.
Investor response was overwhelmingly positive, reflected in a strong uptick in trading volumes. Analysts note that participation in REPM production could create high-margin revenue streams and strengthen GMDC’s positioning in emerging strategic minerals.
India’s rare-earth dependence has been a long-standing concern, particularly in high-tech and defence applications. By encouraging domestic production, the government aims to secure supply chains, foster technological innovation, and generate employment in advanced mineral sectors.
GMDC’s expansion into REPMs aligns with the broader national push for electric mobility, clean energy, and defence readiness. The policy may also attract partnerships with global magnet manufacturers seeking local production.
The stock’s performance today highlights market optimism regarding the company’s growth prospects. Analysts emphasize that regulatory clarity, technology partnerships, and execution capabilities will determine the company’s success in this new domain.
The scheme also signals a broader opportunity for India’s mining and mineral-processing firms to move into high-value strategic sectors. GMDC appears well-positioned to leverage its operational experience and government backing in this regard.