Shares of Gujarat Mineral Development Corporation (GMDC) continued their upward momentum for the third straight session, rising 8.4% to ₹569.80. The surge came after the Union Cabinet cleared a ₹7,280-crore incentive scheme aimed at boosting India’s rare earth magnet manufacturing capacity and reducing reliance on China.
Technology Minister Ashwini Vaishnaw said the initiative targets a shortage of rare earth magnets and seeks to build a 6,000-MT annual capacity. India holds about 6.9 million tonnes of beach-based placer deposits, placing it among the top global holders. The seven-year programme plans five integrated units of 1,200-MT capacity each within three years.
The move aligns with global efforts to diversify rare earth supply chains as China—which handles roughly 90% of global processing—tightened exports earlier this year. Heavy Industries Minister H.D. Kumaraswamy said the scheme includes ₹750 crore in capital subsidies for five selected entities and ₹6,450 crore in sales-linked incentives over five years, open to both public and private players.
GMDC shares have delivered a stellar 150% return since February and touched a record ₹651. Over three and five years, the stock has gained 300% and 1,100% respectively. GMDC, Gujarat’s state-owned miner, is India’s second-largest lignite producer, supplying key industries across the state.