GMDC Shares Jump 8% on ₹7,280 Crore Rare Earth Magnet Incentive Scheme

Shares of Gujarat Mineral Development Corporation (GMDC) surged 8.4% to ₹569.80 after the Union Cabinet approved a ₹7,280 crore incentive program for rare earth magnets. The announcement marked the third consecutive day of gains, reflecting market excitement around India’s push to boost domestic production and reduce reliance on China.

Market Performance: GMDC Shares in Focus

The stock rally highlights GMDC’s growing significance in India’s minerals and metals sector.

• Current Price: ₹569.80 per share
• Gain: 8.4% in early trading
• Trend: Third day of consecutive gains

The incentive program is seen as a major catalyst for the company, especially in light of rising global demand for rare earth magnets used in high-tech industries.

Main News: Union Cabinet Approves Rare Earth Magnet Incentive Program

The Union Cabinet approved a ₹7,280 crore initiative aimed at strengthening India’s domestic capacity for rare earth magnets.

Key points:

• Program Goal: Produce 6,000 metric tons annually of rare earth magnets
• Duration: 7 years
• Structure: Five integrated units of 1,200 tons per annum within three years
• Funding: ₹750 crore capital subsidy for selected participants, ₹6,450 crore as sales-linked incentives over five years

The program aims to reduce dependency on China, which currently processes about 90% of global output, following export restrictions imposed earlier this year.

Company Details: GMDC and Its Role

GMDC is a state-owned mining company under the Government of Gujarat. It is among India’s top players in lignite mining and merchant sales, serving high-growth sectors such as textiles, chemicals, ceramics, bricks, and captive power.

Additional highlights:

• India ranks among the top three countries for rare earth deposits, with 6.9 million tonnes available, primarily in placer deposits along beaches.
• GMDC’s involvement in the incentive program positions it to benefit from the government’s focus on integrated manufacturing facilities.

The initiative is open to both public and private sector companies, including those from the electronics, automobile, and steel industries, providing ample opportunity for industry-wide growth.

GMDC Share Price History: Recent Trends

GMDC has shown remarkable performance in recent years:

• Since February 2025: ~150% gain
• Three-Year Gain: ~300%
• Five-Year Gain: ~1,100%
• Record High: ₹651 per share

The stock’s long-term trajectory reflects GMDC’s steady expansion in lignite production and strategic participation in emerging sectors like rare earth magnets.

Summary: Key Takeaways

The ₹7,280 crore rare earth magnet incentive scheme is a pivotal development for GMDC. The program is expected to enhance domestic production, reduce reliance on China, and strengthen India’s presence in the global magnet supply chain.

With consecutive gains in share price and strong fundamentals, GMDC continues to play a key role in India’s mining and high-tech manufacturing sectors, offering significant growth potential in rare earth magnet production.