Centre clears Rs 7,280 crore plan to build rare-earth magnet manufacturing in India

AMID CHINA’S EXPORT CURBS

- OUR CORRESPONDENT

The Union government on Wednesday cleared a new policy aimed at building domestic capability in one of the world’s most strategically significant material sectors.

The Cabinet, chaired by Prime Minister Narendra Modi, approved a Rs 7,280 crore scheme intended to support the manufacturing of sintered rare earth permanent magnets in India, with an expected installed capacity of 6,000 metric tonnes per annum. Officials said the initiative is designed to reduce the country’s reliance on imports, particularly from China, which currently dominates the global supply chain.

Announcing the approval, Information and Broadcasting Minister Ashwini Vaishnaw said the plan will involve the establishment of integrated facilities spanning the entire production chain. “The scheme will promote manufacturing of rare earth permanent magnets. ‘The aim is to create capacity of 6,000 MTPA,’ the minister told reporters. He added that detailed operational guidelines would be issued shortly. Under the model approved, five beneficiaries will be chosen through a global competitive bidding process, with each allotted up to 1,200 MTPA of production capacity.

‘The initiative, formally named the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, will run for seven years from the date of award.

The period includes two years for establishing full-scale magnet manufacturing units and five years during which beneficiaries will receive incentives linked to sales. Of the total financial outlay, Rs 6,450 crore has been set aside for sales-linked incentives, while capital subsidies amounting to Rs 750 crore will support the creation of production capacity.