Rare Earth Magnet Scheme Approved

New Delhi, Nov 26 (PTI) The Union Cabinet on Wednesday approved a scheme to promote manufacturing of rare earth permanent magnets with an outlay of Rs 7,280 crore.

The 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' 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.

Rare earth magnets are used in major industries including electric vehicles, aerospace, electronics, medical devices and defence.

The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process. Each beneficiary will be allotted up to 1,200 MTPA of capacity.

The total duration of the scheme will be 7 years from the date of award, including a 2-year gestation period for setting up an integrated Rare Earth Permanent Magnets (REPM) manufacturing facility, and 5 years for incentive disbursement on the sale of REPM.