H. D. Kumaraswamy, the Union Minister of Heavy Industries and Steel announced on Tuesday that the centre will take a decision in 15-20 days on opening up a subsidy scheme that is aimed at stepping up domestic production of rare earth magnets. The process is against the backdrop of alarm about global supply chain after China restricted exports of some major industrial metals.
Stakeholder consultations are said to be carried out to find the extent of financial incentives to be provided which will be decided by Kumaraswamy. We have been talking to the Mines Minister. It is being done by our secretary and ministry officials. This will happen soon, he said, a decision will be made. He further pointed out that the interest of a company located in Hyderabad has been evinced and it offered to provide 500 tonnes of magnets by December this year.
Kamran Rizvi, Secretary in the Ministry of Heavy Industries, explained that when the overall incentive value surpasses the sum of 1000 crores, then the affirmative will be in need of the Union Cabinet sweat. In the case of less than 1,000 crore, heavy industries minister and finance minister can decide it. However anything beyond that will require the approval of the Cabinet, Rizvi said.
The envisaged subsidy shall facilitate attraction of the investments to establish processing plants to transform rare earth oxides to high performance magnets. Those are neodymium-iron-boron (NdFeB) and they will be used to make the motors in electric vehicles, the power steering, etc.
Although the home production might require a duration of two years to come through, the government is also considering other sources of rare earths that could be proceeded through the process in different countries like Japan and Vietnam. The Department of Atomic Energy PSU, Indian Rare Earths Ltd., has the rare earth reserves sufficient to manufacture 1,500 tonnes of magnets, providing a solid base of India to take a strategic step of dependence on the foreign nations by self-reliance in this vital area.
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