India lines up ₹7,300-crore push for rare earth magnets

Companies interested in making the magnets need to invest at least ₹200 crore

- Manas Pimpalkhare & Rituraj Baruah

Incentives will be available for companies that provide end-to-end magnet manufacturing capability.

(REUTERS)

Amid China's continued chokehold on supplies, the government is finalizing an incentive scheme to boost local production of rare earth magnets with an allocation of around ₹7,300 crore, two officials aware of the matter said.

Companies interested in making the magnets, used in a variety of strategic sectors, need to invest at least ₹200 crore, and incentives are likely to equal 15% of the total investment, said the first of the two officials cited earlier, both of whom spoke on the condition of anonymity.

"The target of 6,000 mtpa (million tonnes per annum) by 2030 has been set under the scheme. So far, about seven companies, including Midwest (Hyderabad-based Midwest Advanced Materials), have shown interest in manufacturing rare earth magnets under the scheme," this official added. The scheme will operate under the Union ministry of heavy industries.