Indian Government Revealed Details of ₹7,280 Crore Rare Earth Magnets Scheme

The Ministry of Heavy Industries has notified a scheme aimed at boosting domestic manufacturing of rare earth magnets. The initiative seeks to strengthen local capabilities across the value chain and reduce import dependence.

Incentive Structure

Under the scheme, incentives will be capped at ₹2,150 per kilogram of sintered NdFeB magnets. Sales-linked incentives will be disbursed only after the commissioning of manufacturing capacity and will be capped in the range of ₹645 crore to ₹1,290 crore.

In addition to sales-linked incentives, the scheme offers capital subsidy support ranging from ₹75 crore to ₹150 crore. Eligible participants must make a minimum investment of ₹300 crore to ₹600 crore, depending on the scale of the proposed project.

Total Outlay and Raw Material Support

The total financial outlay for the scheme has been fixed at ₹7,280 crore. As part of the implementation framework, IREL will allocate 500 tonnes per annum (TPA) of NdPr oxide to beneficiaries selected under the scheme.

Eligibility and Participation

The scheme is open to domestic companies, international firms, and consortia. In the case of a consortium, the lead partner must hold a minimum equity stake of 51%. Eligibility conditions also include net worth requirements linked to the proposed manufacturing capacity.

Applicants proposing a capacity of 600 TPA must have a minimum net worth of ₹180 crore. For capacities between 700 and 800 TPA, the required net worth is ₹245 crore. Bidders seeking capacities of 900–1,000 TPA must demonstrate a net worth of at least ₹310 crore, while those applying for 1,100–1,200 TPA capacity must have a minimum net worth of ₹375 crore.

Application and Evaluation Process

The ministry stated that detailed eligibility conditions will be outlined in the request for proposal (RFP) document. Applicants will be required to submit a detailed project report, which will be reviewed by a technical committee.

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