Overview

• New Delhi’s scheme targets roughly 6,000 tonnes of permanent magnets per year by 2030, up from earlier proposals and with participation widened to at least five producers.
• About ₹6,500 crore is earmarked for capital subsidies and ₹800 crore for operating support, with incentives reported near 15% for firms investing a minimum ₹200 crore.
• The programme, to be run by the Ministry of Heavy Industries, will back end-to-end manufacturers that process rare earths through to finished magnets.
• Companies that have engaged or shown interest include JSW Group, Mahindra & Mahindra, Kalyani Group, Sona Comstar, Midwest Advanced Materials, Entellus and Proterial.
• The push follows Chinese export controls that exposed supply risks, as India holds large reserves yet relies on limited domestic refining led by IREL and imported around 53,000 tonnes of magnets in FY25.