Now Reading: MHI gets 14-15 bids under rare-earth magnet scheme, PLI crosses Rs 45,000 crore
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MHI gets 14-15 bids under rare-earth magnet scheme, PLI crosses Rs 45,000 crore
MHI gets 14-15 bids under rare-earth magnet scheme, PLI crosses Rs 45,000 crore
The Ministry of Heavy Industries has received 14-15 applications from domestic and international companies under its scheme to manufacture sintered rare-earth permanent magnets in India. Production from the Rs 7,280 crore scheme…
The Story in Brief
The Ministry of Heavy Industries has received 14-15 applications from domestic and international companies under its scheme to manufacture sintered rare-earth permanent magnets in India. Production from the Rs 7,280 crore scheme is expected in 1.5 to 2 years, the ministry said. Separately, investments under the production-linked incentive (PLI) scheme for automobiles have crossed Rs 45,000 crore, exceeding the target of Rs 42,000 crore. The ministry expects to disburse around Rs 4,700 crore in incentives this financial year.
The ministry is also exploring a financing mechanism for electric trucks in the 3.5-55 tonne segment, where fewer than 1,000 units have been sold. For the first time, the government is considering interest subvention to bridge the higher cost of EV loans compared with diesel vehicles. Charging infrastructure for commercial EVs remains a challenge, with utilisation too low for viable returns, a ministry official said.
The Indian Opinion
Celebrating the bid response for rare-earth magnets ignores the bigger question: can any plant actually start production in two years? The PLI Auto scheme has exceeded its investment target by only Rs 3,000 crore, and only Rs 2,200 crore of incentives have been disbursed against a Rs 25,938 crore outlay. The EV financing plan for trucks is welcome but banks remain wary of battery life and resale value. The real test will be how many of these 14-15 bids lead to commercial output by 2028.
Sources (2): auto.economictimes.indiatimes.com, rediff.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
