India readies ₹1,345 cr subsidy scheme for rare earth magnet

Amid growing concern over rare earth magnet supply disruption, inter-ministerial consultations are underway for implementing a Rs 1,345-crore incentive scheme for production of these magnets locally.

- DIPAK MONDAL @ New Delhi

"The government is interested in manufacturers who process from rare earth oxides to magnets. Eligible manufacturers will be selected to process rare earth to magnets. Once selected, they can start production immediately," said an official from the Ministry of Heavy Industries. Big component makers like Uno Minda, Sona Comstar and auto manufacturer Mahindra & Mahindra are said to be lining up for applying under the scheme. "Rare earth magnets are used for manufacturing auto components, and we are hoping all major component makers would apply under the incentive scheme," said a government official. Last month, minister of heavy industries HD Kumaraswamy had said the governm