Centre approves` 7,280 Cr scheme to promote manufacturing of rare earth magnets

New Delhi, Nov 26: The government on Wednesday approved a Rs 7,280 crore scheme to promote manufacturing of rare earth permanent magnets, a move which would help reduce India's dependence on China.

Rare earth magnets are vital for a number of sectors like electric vehicles, renewable energy, electronics, aerospace, and defence applications.

The 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs)' was approved at a Cabinet meeting chaired by Prime Minister Narendra Modi. "The scheme will promote manufacturing of rare earth permanent magnets. The aim is to create capacity of 6,000 MTPA (metric tonne per annum)," Information and Broadcasting Minister Ashwini Vaishnaw told reporters here.

The scheme will support the creation of integrated manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished magnets.

It envisions allocating the total capacity to five beneficiaries through a global competitive bidding process. Each beneficiary will be allotted up to 1,200 MTPA capacity. The minister said that the detailed guidelines will be released soon.