Rare earths scheme gets Cabinet nod; PM Modi hails historic decision
The total financial outlay of the scheme is Rs 7,280 crore, comprising sales-linked incentives of Rs 6,450 crore on REPM sales for five years
Prime Minister Narendra Modi on Wednesday (November 26) said the decision to establish an ecosystem to manufacture rare earths permanent magnets will reduce imports.
The Union Cabinet on Wednesday approved a Rs 7,280 crore scheme to promote the manufacturing of rare earth permanent magnets, a move which would help reduce India's dependence on China.
Cabinet nod
The 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs)' was approved at a Cabinet meeting chaired by Prime Minister Narendra Modi.
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The total financial outlay of the scheme is Rs 7,280 crore, comprising sales-linked incentives of Rs 6,450 crore on REPM sales for five years and capital subsidy of Rs 750 crore for setting up 6,000 MTPA of REPM manufacturing facilities.
Rare earth magnets are vital for a number of sectors like electric vehicles, renewable energy, electronics, aerospace, and defence applications.
"A historic first for India's high-tech manufacturing! The Union Cabinet has approved a scheme to establish India's first integrated ecosystem for manufacturing Sintered Rare Earth Permanent Magnets (REPM), which are essential components in electric vehicles, wind turbines, defence systems and aerospace technologies," Modi said in a post on X.
Reducing imports
He said the initiative aims at creating domestic capacities and reducing imports, and also focuses on green technologies.
Modi said the Cabinet decision on two multi-tracking projects covering four districts across Maharashtra and Gujarat will add to the rail infrastructure.
"Mobility, operational efficiency and service reliability will be enhanced. Multi-modal connectivity and logistic efficiency will also improve," he said.
The prime minister said the decision to expand the Pune Metro was a major boost to the city's public transport network.
"Cabinet approves Phase-2 of Pune Metro (Lines 4 and 4A) connecting various areas of the city. This decision ensures a faster and more comfortable commute for the people of Pune, which is an important centre for growth and innovation," he said.
Rare earth magnets sourced from all nations
Meanwhile, rare earth magnets are being sourced from countries including China and Japan that have agreements with India, Union Minister Ashwini Vaishnaw said on Wednesday.
The minister said India plans to export surplus capacity once local production of rare earth magnets begins.
"All the countries with which we have agreements, it comes from those countries. Whether it is from China, whether it is from Japan, whether it is from Vietnam, Australia, Canada, and some US manufacturing is also being revised. It comes from all these places for the immediate requirement," Vaishnaw told reporters during a briefing on Cabinet decisions.
In April, China implemented strict export licensing on rare earth elements like terbium and dysprosium which are key inputs for high-performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics, automobile etc.
(With agency inputs)