GMDC Share Price Gains Over 8% as Centre Approves Rare Earth Magnet Incentive Scheme

GMDC share price rose 8.29% to ₹571.90 on Thursday at 12:04 PM, marking the third consecutive day of gains. The latest surge follows the Union Cabinet’s approval of a ₹7,280 crore incentive programme to boost India’s rare earth magnet manufacturing capacity.

The initiative aims to reduce India’s reliance on China and strengthen domestic production of key components used in electric vehicles, electronics, and defence equipment.

Why Did India Need A Rare Earth Magnet Incentive Scheme?

The newly approved programme addresses a significant shortage in rare earth magnets and aims to build an annual capacity of 6,000 metric tons. Rare earth deposits, often found in beach sands known as placer deposits, are abundant in India. The country holds 6.9 million tonnes of rare earth resources, placing it among the world’s top three nations for such reserves.

The scheme will run for 7 years and support the creation of integrated manufacturing facilities. India plans to establish 5 manufacturing units, each with a capacity of 1,200 tonnes per year, within the next three years.

Who Will Get What in the Rare Earth Magnet Incentive Scheme?

To encourage participation from both public and private players, the government has designed the scheme with two types of financial support.

• ₹750 crore will be given as capital subsidy to five selected manufacturers.
• ₹6,450 crore will be provided as sales-linked incentives over five years after the units begin production.

Companies in electronics, automotive and steel sectors have already shown interest in joining the programme. The selection process will be transparent, and chosen companies will decide the locations of their manufacturing plants.

GMDC Share Price Performance

GMDC share price has witnessed an exceptional rise over recent months. Since February, the share price has delivered a 150% return, turning it into a multibagger for investors. The rally also pushed the stock to a record high of ₹651 earlier.

The long-term trend has been even more impressive. The stock has gained 300% in three years and an outstanding 1,100% over five years.

As India’s second-largest lignite producer and the largest merchant seller of lignite, GMDC plays a major role in supplying industries such as textiles, ceramics, chemicals, bricks and captive power. Its operations span lignite-rich regions across Gujarat.

Read more: Lenskart Share Price Rises Ahead of Labubu-Themed Eyewear Launch.

Conclusion

GMDC’s share price continues to benefit from strong market sentiment and India’s push to expand rare earth magnet manufacturing. The government’s large incentive scheme is expected to attract major industry players, strengthen domestic capabilities, and reduce import dependency. For GMDC, growing interest in minerals and related sectors may provide further support to its long-term outlook.

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