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Cabinet Approves ₹7,280-Crore Scheme to Build Rare Earth Magnet Industry

The plan targets 6,000 MTPA integrated capacity over seven years through global bidding to cut dependence on Chinese supplies.

Overview

  • The outlay includes ₹6,450 crore in sales-linked incentives over five years and ₹750 crore as a capital subsidy.
  • Capacity will be allocated to up to five beneficiaries via a global tender, with each eligible for as much as 1,200 MTPA.
  • Selected projects must integrate the full value chain from rare-earth oxides to metals, alloys and finished sintered magnets.
  • Officials said the move responds to recent supply disruptions tied to China’s export licensing and will support EVs, renewables, electronics, aerospace and defence.
  • Detailed guidelines are expected soon, the setup period is two years before production, incentives run for five years, and domestic demand is projected to double by 2030.