Highlights

• Odisha government approves 10 industrial projects worth ₹44,200 crore ($5.3B) spanning hydropower, semiconductors, cement, telecom, aerospace, and rare earth magnets.
• A ₹1,050 crore permanent magnet plant by Magnova Private Ltd signals India's push to build domestic rare-earth magnet capacity, reducing its reliance on the Chinese supply chain.
• Approval marks downstream positioning in the rare-earth value chain, but execution depends on securing feedstock, securing metallization capacity, and meeting construction timelines.

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The Odisha government has approved 10 industrial projects totaling ₹44,200 crore—roughly $5.3 billion USD (at ~₹83 per USD). The projects span hydropower, semiconductors, cement, telecom infrastructure, aerospace components, and rare earth magnet manufacturing.

Odisha State

Among them is a ₹1,050 crore (≈$126 million USD) high-performance permanent magnet plant proposed by Magnova Private Ltd (opens in a new tab) in Khurda. A ₹4,620 crore (≈$556 million USD) semiconductor memory chip unit was also approved. The announcement was reported by PTI on February 22, 2026, following a High-Level Clearance Authority meeting chaired by Chief Minister Mohan Charan Majhi. (opens in a new tab)

At face value, this signals coordinatedstate-level industrial acceleration.

The Magnet Headline: Strategic Signal or Early-Stage Ambition?

The magnet facility is the most strategically relevant element for rare earth investors.

India currently imports the majority of its rare earth permanent magnets, many tied directly or indirectly to Chinese supply chains. A domestic magnet plant—if operationalized at scale—would represent meaningful downstream positioning.

What is accurate:

• India is actively pursuing domestic magnet and semiconductor capacity.
• Odisha has formally approved the capitalcommitments.
• India has long articulated goals of reducing rare earth dependency.

What remains unproven:

• The source of NdPr oxide and heavy rare earth inputs.
• Integration of metallization and alloying capacity.
• Construction timeline and commissioning schedule.

Approval is not production. Magnet independence requires oxide separation, metal/alloy production, strip casting, sintering, machining, and coating capacity—plus stable feedstock contracts.

Energy and Chips: Infrastructure Meets Ambition

Large pumped storage hydropower projects, including investments by Adani Group (opens in a new tab) affiliates, align with India’s renewable integration strategy. Energy-intensive manufacturing—magnets and semiconductors alike—depends on grid stability.

The semiconductor memory plant, at ~$556 million, is ambitious but modest by global fabrication standards. Advanced chip fabs often require multi-billion-dollar capital stacks. Execution and technology partnerships will determine viability.

Chief Minister Mohan Charan Majhi

Why This Matters in the Rare Earth Supply Chain

This is downstream positioning. That is notable.

Unlike mining announcements, magnet plants aim to capture value closer to finished products. If feedstock is secured—domestically or via diversified imports—India could strengthen its role in global magnet supply.

If feedstock remains externally dependent, the facility risks becoming an assembly node in a foreign-controlled supply chain.

The policy intent is credible. The industrial verdict will come in magnet tonnage shipped, not crores announced.

Markets will monitor. Engineers will deliver.

Profile

Odisha (Odia: oṛiśā, pronounced [oˈɽisa]), spelled Orissa until 2011, is a state located in Eastern India. It is the eighth-largest state by area, and the eleventh-largest by population, with over 41 million inhabitants. The state also has the third-largest population of Scheduled Tribes in India.

Odisha is a rapidly growing, resource-rich state, with a GSDP estimated at ₹9.9 lakh crore ($~118 billion) for 2025–26, growing at a robust 7.9%. Driven by industrial, mining, and service sectors, it is a major producer of iron ore, bauxite, and steel, while transforming into a manufacturing and investment hub with high infrastructure growth.