Rare earth magnet making to get a ₹1,345 cr govt push

Scheme to be for end-to-end processing of rare earth magnets, heavy industries secy said

- Manas Pimpalkhare

India is working on a ₹1,345-crore scheme to encourage the local production of rare earth magnets, at a time when Chinese curbs on these critical items threaten large swathes of the automobile industry.

The subsidy scheme is being discussed by various ministries, heavy industries minister H.D. Kumaraswamy said, adding the final proposal will be sent to the Union cabinet.

"We have sent the first outline for inter-ministerial consultation," Kumaraswamy said in response to a query about rare earth magnets.

Mint had reported on 17 June that an incentive programme for processing rare earth oxides and producing permanent magnets was in the works.

Heavy industries secretary Kamran Rizvi said that incentives will be given to two manufacturers who can process rare earth magnets from rare earth oxides. The scheme will be for end-to-end processing of rare earth magnets, he said.