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Topic 175 · Economy, Budget & Banking

Rare-earth magnet scheme and corridors

10 MCQs · tap an option to check it · All answers

Revise the 12 points first Book 1 RATNA

Core Trigger: The Heavy Industries Ministry invited bids on 20 March 2026 for the Rs 7,280 crore rare earth magnet scheme; 20 bids came in.
Scheme Goal: It targets 6,000 tonnes a year of NdFeB magnet capacity, split among five bidders of up to 1,200 tonnes each.
Minister Involved: Nirmala Sitharaman, Finance Minister, presented Budget 2026-27 on 1 February 2026.
Outlay Split: Rs 750 crore is capital subsidy and Rs 6,450 crore is sales-linked incentive.
Data Point: India holds about 6.27% of global rare earth reserves but only 0.83% of production; China makes 68.6% (EY).
Stakeholders: Bidders include Larsen & Toubro, Coal India and Lohum; the three lowest get NdPr oxide from IREL.
India Link: Budget 2026-27 proposed Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu.
Key Sites: IREL operates at Chavara (Kerala), Manavalakurichi (Tamil Nadu), OSCOM (Odisha) and Aluva (Kerala).
Founded: IREL was incorporated in 1950 and became a full government undertaking under the Department of Atomic Energy in 1963.
Approval: The Union Cabinet approved the scheme on 26 November 2025: two years to build plants, then five years of incentives.
Regulation: Monazite ores contain uranium and thorium, so mining stays under government control.
Definition: Rare earths are 17 elements: scandium, yttrium and 15 lanthanides; NdFeB magnets are among the strongest permanent magnets.

Question 1 of 10

How many bids came in for the Rs 7,280 crore rare earth magnet scheme?

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Answer: (B) 20

Core Trigger: The Heavy Industries Ministry invited bids on 20 March 2026 for the Rs 7,280 crore rare earth magnet scheme; 20 bids came in.From Book 1 RATNA, topic 175, point 1

Question 2 of 10

How many tonnes a year of NdFeB magnet capacity does the scheme target?

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Answer: (D) 6,000

Scheme Goal: It targets 6,000 tonnes a year of NdFeB magnet capacity, split among five bidders of up to 1,200 tonnes each.From Book 1 RATNA, topic 175, point 2

Question 3 of 10

Which Union Minister presented Budget 2026-27 on 1 February 2026?

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Answer: (C) Nirmala Sitharaman

Minister Involved: Nirmala Sitharaman, Finance Minister, presented Budget 2026-27 on 1 February 2026.From Book 1 RATNA, topic 175, point 3

Question 4 of 10

Which component of the outlay is Rs 6,450 crore?

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Answer: (B) Sales-linked incentive

Outlay Split: Rs 750 crore is capital subsidy and Rs 6,450 crore is sales-linked incentive.From Book 1 RATNA, topic 175, point 4

Question 5 of 10

According to EY, what share of global rare earth production does China make?

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Answer: (A) 68.6%

Data Point: India holds about 6.27% of global rare earth reserves but only 0.83% of production; China makes 68.6% (EY).From Book 1 RATNA, topic 175, point 5

Question 6 of 10

Which firm supplies NdPr oxide to the three lowest bidders?

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Answer: (D) IREL

Stakeholders: Bidders include Larsen & Toubro, Coal India and Lohum; the three lowest get NdPr oxide from IREL.From Book 1 RATNA, topic 175, point 6

Question 7 of 10

Consider: 1. IREL operates at Chavara in Kerala. 2. IREL's OSCOM site is in Tamil Nadu. Which is/are correct?

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Answer: (A) Only 1

Key Sites: IREL operates at Chavara (Kerala), Manavalakurichi (Tamil Nadu), OSCOM (Odisha) and Aluva (Kerala).From Book 1 RATNA, topic 175, point 8

Question 8 of 10

In which year was IREL incorporated?

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Founded: IREL was incorporated in 1950 and became a full government undertaking under the Department of Atomic Energy in 1963.From Book 1 RATNA, topic 175, point 9

Question 9 of 10

On which date did the Union Cabinet approve the scheme?

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Answer: (D) 26 November 2025

Approval: The Union Cabinet approved the scheme on 26 November 2025: two years to build plants, then five years of incentives.From Book 1 RATNA, topic 175, point 10

Question 10 of 10

Consider: 1. Monazite ores contain only iron. 2. Rare earths are 17 elements, scandium, yttrium and 15 lanthanides. Which is/are correct?

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Answer: (B) Only 2

Regulation: Monazite ores contain uranium and thorium, so mining stays under government control.From Book 1 RATNA, topic 175, point 11

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