New Delhi. The central government has taken a big step towards becoming self-reliant in strategically important technology. A new scheme worth Rs 7,280 crore has been approved to promote domestic manufacturing of rare earth magnets in the country. Its direct objective is to reduce dependence on China and secure essential supplies for sectors like electric vehicles, defence, electronics and green energy.
This scheme of the government is related to the manufacturing of ‘Sintered Rare Earth Permanent Magnet’. These magnets are made of neodymium-iron-boron and are counted among the most powerful permanent magnets in the world. Currently, India has to completely import such magnets, while their demand is increasing rapidly. Under the new scheme, emphasis has been laid on creating domestic capacity.
Important role from EV to defense
Rare earth magnets are used in electric vehicle motors, mobile phones, wind power plants, aerospace and defense equipment. According to the Ministry of Heavy Industries, the imagination of modern technology is incomplete without these magnets. Especially in the field of electric vehicles and renewable energy, their need is continuously increasing, due to which supply security has become important for the country.
Target of 6000 metric ton capacity
Under the scheme, 6,000 metric tonnes of magnet manufacturing capacity will be developed annually in the country. For this, maximum five companies will be selected through a transparent bidding process. Each company will be allotted a capacity of a minimum of 600 and a maximum of 1,200 metric tons. This will also strengthen private sector participation and promote competition.
Subsidy and raw material guarantee
Selected companies will be given incentives on the sale of magnets. Besides, capital subsidy will also be provided for setting up the plant. Some companies will be given limited but assured supply of raw materials from IREL (India) Limited, so that production is not disrupted and initial risks can be reduced.
This scheme will be for a total of seven years, in which the first two years have been fixed for setting up the plant. The government says that this will remove the huge shortage of rare earth magnets in the country and reduce dependence on imports. In the long run, this move will help India become self-reliant in strategic technology and gain a stronger position in the global supply chain.
Comments are closed.