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2h ago

Union Cabinet Clears ₹7,280 Crore Scheme to Build Rare Earth Magnet Manufacturing

The move seeks to cut reliance on Chinese imports by seeding an end-to-end domestic supply chain for critical magnets.

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Rare earth metal
With the Rs 7,280-crore scheme, India will not only establish a long-term rare earths ecosystem, it will also escape China's chokehold. (Image: Getty Images/File)
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Overview

  • Government targets 6,000 MTPA of capacity to be allotted to five companies through global competitive bidding.
  • Total outlay includes ₹6,450 crore in sales‑linked incentives over five years and ₹750 crore as capital subsidy.
  • The scheme runs seven years from award, with two years to set up plants followed by five years of incentive disbursement.
  • Facilities must integrate the full value chain from rare earth oxides to metals, alloys and finished sintered magnets.
  • Officials cite applications across EVs, renewables, electronics, aerospace and defence, with domestic consumption expected to double by 2030.