India Plans Rs 13.5 Billion Scheme for Rare Earth Magnets

14 Jul 2025 CW Team

The Indian government is preparing to launch a Rs 13.5 billion incentive scheme to promote the domestic production of rare earth magnets, in a move aimed at reducing the country’s reliance on Chinese imports, according to official sources.

The proposed scheme, expected to run for seven years, will support the creation of a local supply chain for rare earth magnets—critical components used in electric vehicles, electronics, and defence equipment. Subsidy levels are still being finalised, with industry proposals ranging from 30 to 50 per cent support. The final subsidy structure will influence the scheme’s total fiscal impact.

A concept note for the initiative has been circulated by the Ministry of Heavy Industries to key departments including the Ministry of Mines, Ministry of Finance, Department of Atomic Energy, and NITI Aayog. The plan gains urgency following China’s recent export restrictions on rare earths, which raised global supply chain concerns.

Officials believe the Rs 13.5 billion allocation will be adequate to establish processing and manufacturing capacity, with industry feedback indicating that it will take two years to set up processing plants, and Indian-made magnets could be available within three years.

Despite possessing 6.9 million metric tonnes of rare earth reserves, India mined only 2,900 tonnes in 2024, while imports reached 53,000 metric tonnes in FY25. State-run IREL remains the sole entity currently engaged in mining and refining rare earths in India.

At least five to six companies have expressed interest in magnet manufacturing, including major importer Sona Comstar and Midwest Advanced Materials, which has committed to producing 500 tonnes by end-2025 and scaling up to 5,000 tonnes in 2026.

The scheme is part of India’s broader effort to develop strategic mineral capacity, enhance self-reliance, and diversify critical supply chains in high-tech sectors.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..