Now Reading: 14-15 bids for India’s rare-earth magnet production scheme
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14-15 bids for India’s rare-earth magnet production scheme
The Ministry of Heavy Industries has received around 14-15 applications from domestic and international companies under its ₹7,280 crore scheme to promote manufacturing of sintered rare-earth permanent magnets, a critical component for…
The Story in Brief
The Ministry of Heavy Industries has received around 14-15 applications from domestic and international companies under its ₹7,280 crore scheme to promote manufacturing of sintered rare-earth permanent magnets, a critical component for electric vehicles and renewable energy. Additional Secretary Hanif Qureshi said the global tender has drawn a “very good response” from both Indian and overseas firms. The government expects domestic production to begin within 1.5-2 years, aiming to establish 6,000 metric tonnes per annum of integrated capacity from neodymium-praseodymium oxide to finished magnets.
Separately, MHI said investment under the PLI Auto scheme has crossed ₹45,000 crore, exceeding the original target of ₹42,000 crore. Around ₹2,200 crore in incentives has been disbursed so far, with ₹4,700 crore expected in the current financial year. The ministry is also working on financing support for electric commercial vehicles, particularly the 3.5-55 tonne truck segment where fewer than 1,000 electric trucks have been sold so far. Lenders remain cautious due to concerns about resale value, battery life and technology maturity.
The Indian Opinion
The PLI Auto scheme overshooting its investment target by ₹3,000 crore sounds impressive, but it glosses over where the money has actually landed. Meanwhile, the tender for rare-earth magnets has drawn just 14-15 bidders, and the government itself expects production to start only in 1.5-2 years. The real test is whether these magnets will actually be cheaper or more reliable than imports once tariffs and compliance costs are factored in. A more pointed question: will any of these bidders commit to making the NdPr oxide in India, or are we just assembling imported material into a magnet?
Source: auto.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
