new delhi, June 18 -- Companies ready to mine and refine rare earth elements may get grants and easy clearances as India tries to counter China's supply restrictions, two people with knowledge of the development said. The measures include grants-or viability gap funding (VGF)-easing of the regulatory framework and fast-tracking auctions of rare-earth mines and acquisitions to counter the curbs imposed by China on sales of rare earth magnets and minerals, they said. "The government aims to achieve a 10% share of global rare earth processing within the country in the coming years. VGF, incentives for refining and regulatory easing are part of the broader strategy to achieve that target," one person said. The Indian government and industry are exploring ways to reduce reliance on China for these elements that go into several electronic components, particularly motors that drive electric vehicles. China imposed export restrictions on its rare earth minerals and magnets in April amid the trade and tariff war between the US and other nations. VGF provides financial support to infrastructure projects developed under public-private partnerships that may not be commercially viable. As much as 40% of the total project cost is provided-a maximum of 20% each by the Central and state government. The amount to be provided as grants for rare earth processing is being assessed, the people said. Companies that could benefit from these grants include NMDC, Coal India, Gujarat Mineral Development Corporation, Orissa Minerals Development Company, Hindustan Zinc, Vedanta and MOIL, formerly Manganese Ore (India), an industry executive said on condition of anonymity. Another person said that policy measures for rare earth elements (REE) would be taken under the Nation Critical Mineral Mission that the Union Cabinet approved in January. However, given the urgency of the situation, measures beyond the targets of the mission may be taken up. The government is already working on an incentive scheme for recycling critical minerals including rare earth elements, with an estimated allocation of Rs.1,500 crore. According to the mines ministry, this is in the final stages of approval, after which it will go to the Union Cabinet. Rare earths are a collection of 17 elements-scandium, yttrium and 15 lanthanides, which are: lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb) and lutetium (Lu). India imports most of its rare earth requirements. Imports rose 16.7% to 2,270 tonnes in FY24. These elements play a pivotal role in high-tech industries, automobiles, renewable energy transition, defence systems as well as electronics....