The Ministry of Heavy Industries has announced a ₹7,280 crore initiative aimed at strengthening domestic production of rare earth magnets, reducing import dependence, and supporting the entire value chain of magnet manufacturing.
Incentives and Financial Support
The scheme offers sales-linked incentives capped at ₹2,150 per kilogram of sintered NdFeB magnets, payable after commissioning of the manufacturing capacity, with total incentives ranging from ₹645 crore to ₹1,290 crore. In addition, capital subsidies of ₹75 crore to ₹150 crore are provided, requiring participants to invest between ₹300 crore and ₹600 crore based on project scale.
Raw Material Allocation
Indian Rare Earths Limited (IREL) will allocate 500 tonnes per annum of NdPr oxide to beneficiaries selected under the scheme, ensuring access to critical raw materials.
Eligibility and Participation Criteria
The program is open to domestic companies, international firms, and consortia. Consortium lead partners must hold at least 51% equity. Net worth requirements vary with capacity:
- 600 TPA: ₹180 crore
- 700–800 TPA: ₹245 crore
- 900–1,000 TPA: ₹310 crore
- 1,100–1,200 TPA: ₹375 crore
Application Process
Interested applicants must submit a detailed project report for evaluation by a technical committee. Specific eligibility criteria and other details will be outlined in the request for proposal (RFP) document issued by the ministry.
Summary
The Indian government’s ₹7,280 crore rare earth magnets scheme aims to enhance domestic production, provide sales-linked and capital subsidies, allocate critical raw materials, and set net worth-based eligibility criteria for participants. The initiative is expected to reduce import dependence and support the growth of the local magnet manufacturing industry.
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