Cabinet Set To Clear Rs 7,000 Cr Rare Earth Magnet Manufacturing Scheme, Says Report

The Union Cabinet is anticipated to approve a Rs 7,000-crore incentive programme on Wednesday to bolster domestic production of rare earth magnets. This initiative is aimed at decreasing India's dependency on imports of these crucial minerals and enhancing the supply chain in advanced manufacturing industries.

Currently, India imports a significant portion of its rare earth permanent magnets, mainly from China. The new scheme intends to support the development of nearly 6,000 tonnes of production capacity for these magnets, which are vital in electric vehicles, electronics, wind turbines, and defence platforms.

Support for Strategic Manufacturing Sectors

The scheme, crafted with a seven-year duration, is set to promote investment in processing, refining, and magnet production, which are areas not yet fully developed in India. This effort is part of a larger government strategy to secure mineral supply chains and boost technological independence in emerging sectors.

The Finance Ministry has already approved the scheme, enabling the ongoing Cabinet meeting, which commenced at 12:30 pm, to consider the proposal. The Ministry of Mines has been instrumental in shaping the framework, focusing on attracting both global and local companies, enhancing value addition within the nation, and ensuring the strategic material's long-term availability.

Focus on Long-term Material Availability

The incentive scheme aligns with the government's broader objectives of ensuring the availability of critical minerals and improving technological autonomy in key sectors. The Cabinet's approval is expected soon, paving the way for a significant step towards strengthening India's manufacturing capabilities.

Sources have indicated that the scheme's approval is imminent, marking a crucial development in India's efforts to fortify its position in high-tech manufacturing sectors and reduce reliance on foreign imports for essential materials.