Cabinet approves ₹7,280 cr rare earth magnets scheme

The scheme has been drawn up along the lines of India’s semiconductor mission

- Jocelyn Fernandes & Manas Pimpalkhare

The Union cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a ₹7,280 crore scheme aimed at promoting the manufacture of rare earth permanent magnets (REPM).

This is a “first-of-its-kind” initiative by the Centre to promote REPM ecosystem, “enhancing self-reliance and positioning India as a key player in the global REPM market”, the government said in a statement.

Mint was the first to report last week that the finance ministry’s expenditure finance committee (EFC) had approved the ₹7,300 crore production-linked incentives (PLI) scheme, setting the stage for cabinet clearance.

Minister of information and broadcasting Ashwini Vaishnaw told reporters on Wednesday that the REPM scheme was drawn along the lines of India’s semiconductor mission.

He said incentives under this scheme would allow India to become selfreliant in rare earth magnet manufacturing in the next three to four years. “This is a very important strategic decision. It will create a completely integrated manufacturing ecosystem.”