TaxTMI 
TaxTMI 
Custom duty exemption on capital goods needed for critical minerals, to set up dedicated corridors
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....ustom duty exemption on capital goods needed for critical minerals, to set up dedicated corridors<BR>Customs & Trade<BR>Dated:- 1-2-2026<BR>PTI<BR>New Delhi, Feb 1 (PTI) The government on Sunday proposed dedicated corridors in mineral-rich states like Odisha and Tamil Nadu and import duty exemption on capital goods needed for processing critical minerals to boost mining and processing activities. ....
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.... This assumes significance in view of the government's focus on promoting rare earth or critical minerals to reduce import dependence as these can be very useful for boosting electric vehicles, renewable energy, electronics, aerospace, and defence applications. While presenting the Union Budget 2026-27 in the Lok Sabha, Finance Minister Nirmala Sitharaman said, "It is proposed to provide basic ....
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....customs duty exemption to the import of capital goods required for processing of critical minerals in India." She noted that a Scheme for Rare Earth Permanent Magnets was launched in November 2025. "We now propose to support the mineral-rich States of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated Rare Earth Corridors to promote mining, processing, research and manufactur....
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....ing," she said. The finance minister proposed to reduce custom duty on Monazite under critical mineral section to zero from existing 2.5 per cent. Monazite is a reddish-brown phosphate mineral, typically found in igneous and metamorphic rocks or as heavy grains in placer deposits, serving as a primary ore for rare-earth elements (cerium, lanthanum, neodymium) and radioactive thorium. Earlier....
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.... in November 2025, the Union Cabinet had approved 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a financial outlay of Rs 7,280 crore. This first-of-its-kind initiative is aimed to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key pla....
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....yer in the global REPM market. REPMs are one of the strongest types of permanent magnets and are vital for electric vehicles, renewable energy, electronics, aerospace, and defence applications. The Scheme will support the creation of integrated REPM manufacturing facilities, PM India involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs. Driven b....
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....y the rapidly growing demand from electric vehicles, renewable energy, industrial applications, and consumer electronics, India’s consumption of REPMs is expected to double by 2030 from 2025, the government had said. Presently, India’s demand for REPMs is met primarily through imports. With this initiative, India will establish its first-ever integrated REPM manufacturing facilities, gener....
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....ating employment, strengthening self-reliance and advancing the nation’s commitment to achieve Net Zero by 2070. PTI KKS MR<BR> News - Press release - PIB....