India Approves Integrated Rare-Earth Magnet Scheme

The Union Cabinet approved a Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets with a financial outlay of ₹7,280 crore, aiming to create 6,000 metric tonnes per annum of integrated production capacity.
Information and Broadcasting Minister Ashwini Vaishnaw said rare-earth permanent magnets are among the strongest permanent magnets and are critical for electric vehicles, renewable energy, electronics, aerospace and defence. The scheme supports end-to-end facilities that convert rare-earth oxides to metals, metals to alloys, and alloys to finished sintered magnets.
Driven by rising demand from EVs, renewables, industrial uses and consumer electronics, domestic consumption of these magnets is expected to double by 2030. Supply is currently met largely through imports; the new programme seeks to establish the country’s first integrated manufacturing chain, enhance self-reliance, generate employment and contribute to the 2070 Net Zero commitment.
The scheme spans seven years from award, including a two-year gestation period for plant setup, and foresees allocating total capacity to five beneficiaries selected through a global competitive bidding process.
Separately, the Cabinet approved Pune Metro Phase-2 Lines 4 and 4A, estimated at around ₹9,857 crore and targeted for completion within five years.