7,350 cr plan in the works to drive output of rare earth magnets

Underthe scheme, thegovernment will back the creation of five integrated REPM manufacturing units, each with a capacity of up to 1,200 tonnes per annum.

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Applicants may bid for a minimum of 600 tonnes perannumandamaximum of 1,200 tonnes per annum, in 100 tonnes per annum increments.

Selected firms will be eligible fortwo forms of financial support — (a) a sales-linked incentive on the sale of sintered NdFeB magnets; (b) a capital subsidy for establishing integrated NdFeB manufacturing unitsin India.

India currently imports almost all of its REPM needs. Government estimates place domestic demand at around 4,010 tonnes a year, expected to almost double to 8,220 tonnes by 2030.

While NdPr oxide prices in India broadly mirror global rates, finished REPMs are roughly 43 per cent costlier in the country than abroad. “The same indicatesthat apart from economies of scale, subsidies are provided by leading countries across the entire value chain of REPM manufacturing,” one of the documents notes.