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.

Resources

03 Jun 2026

Jyoti Structures Launches Heat Safety Drive Across Sites

Jyoti Structures (JSL) has strengthened heat safety measures across its project sites and manufacturing facilities as temperatures rise across India. The company has implemented a Summer Safety Plan covering all transmission line projects to address risks related to heat stress, dehydration and worker fatigue.The initiative includes rescheduling work away from peak afternoon temperatures, provision of drinking water, ORS and lemon-salt solutions, and installation of rest shelters near work areas. Daily toolbox talks, worker health monitoring, first-aid preparedness, emergency transport arrange..

MHADA Declares 82 Buildings Most Dangerous in Central and South Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) has declared 82 buildings as most dangerous across Central and South Mumbai and has appealed to residents to vacate immediately. The list, prepared after structural assessments by the authority, identifies buildings judged to pose imminent risk to occupants and to passersby. Local civic bodies have been asked to coordinate evacuations and to make arrangements for temporary shelter and rehabilitation for displaced households. Officials said the authority prioritised buildings with visible structural distress, severe cracking, tiltin..

Damage Reported At Halwara Airport Terminal After First Rains

Severe damage was reported at the terminal of Halwara Airport during the first major rain spell of the season, prompting immediate concern among aviation and local authorities. Images from the site showed water ingress and visible deterioration of the terminal interior, affecting passenger areas and ancillary services. The airport authority suspended certain operations temporarily to assess structural safety and ensure passenger wellbeing. Preliminary inspections have prioritised electrical systems and roof seals to prevent further water ingress. State aviation officials ordered a formal inqui..