Hyderabad (Telangana) [India], July 12 : Union Coal and Mines Minister G Kishan Reddy on Saturday said that the government has introduced Production Linked Incentive (PLI) schemes to encourage participation of private players in rare earth permanent magnets production.
The Centre has initiated PLI schemes, which offer financial incentives tied directly to measurable outcomes and have been designed to boost domestic manufacturing.
While talking to ANI, the Union Minister said, "For this, the Indian government has also started some PLI schemes to encourage it. We are paying attention to this subject. The Prime Minister has continuously discussed this subject. Recently, during his visit to 5 countries, discussions were held with different countries on this subject. The raw material of rare earth is also available in smaller quantities in India. Importing raw materials, processing them, and manufacturing permanent magnets for various applications, including cell phones, space technology, and defence, creates a huge demand. The Indian government is working seriously for this. This scheme has also been brought under it."
Additionally, the Minister also highlighted India's shift in sourcing strategy, noting that India was previously entirely dependent on China for rare-earth permanent magnets.
India, earlier, relied entirely on imports from China for the permanent magnets, the Minister said. He added that the Non-Ferrous Materials Technology Development Centre (NFTDC), supported by the Ministry of Mining in Hyderabad, has successfully prepared a permanent magnet processing unit equipped with the necessary machinery.
The central government plans to provide the technology developed by NFTDC to private factories for manufacturing.
"We used to be 100 per cent dependent on China for permanent magnets of the rare earths. But recently, China has refused to supply. With this view, the Indian government is making efforts for permanent magnet manufacturing. Our mining ministry's institute in Hyderabad has made efforts and prepared a permanent magnet processing unit with equipment. After three to four months, we will try to manufacture permanent magnets by giving the technology to different private factories," Reddy told ANI.
In April 2024, China announced that it would impose export controls on certain rare earth-related items, triggering a global supply shortage, including in India.
In the light of rare earth magnet production, on Friday, Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), welcomed the central government initiatives to ramp up rare earth magnet production in India, particularly the incentives the latter is earmarking for.
Union Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings.