New Delhi, 11 July (IANS). Union Heavy Industries Minister H.D. Kumaraswamy said on Friday that the Government of India has prepared a plan to give a subsidy of Rs 1,345 crore for rare economy magnet manufacturers in the country.
The Union Minister said, “A plan of subsidy of Rs 1,345 crore has been prepared for Rare Earth Magnet Manufacturers. The scheme is currently subject to inter-ministerial consultation. It is currently proposed to include two manufacturers, although it may change until the plan is ready.”
Kamran Rizvi, secretary of the Ministry of Heavy Industries, said that the producers engaged in end-to-end processing from rare economy to magnets will be eligible for this subsidy. The proposed incentives in the scheme are expected to include companies in both private and public sector.
Rizvi said, “We are interested in magnets, whoever gives us magnets will encourage. This (scheme of Rs 1,345 crore) is the first framework sent by us for inter-ministerial consultation. It is proposed that it will have two manufacturers.”
Domestic vehicle manufacturer Mahindra & Mahindra and Auto Component Manufacturer, Uno Minda, are two companies who have expressed interest in setting up plants for domestic magnet production.
During a meeting with the Ministry of Heavy Industries in June, Mahindra proposed that the company could either partner with an established manufacturer or a long-term supply agreement with a local manufacturer. The company is one of the country’s leading electric vehicle manufacturers.
The Uno Minda supplies auto components to auto manufacturers like Maruti Suzuki.
China has banned the export of rare meaning magnets in response to the US tariff growth and is using this object to bargain in the trade war. It has also affected other countries which depend on Chinese imports.
Rare Earth Magnets are used in different high-tech applications, including electronic goods and electric vehicles to mass industrial equipment.
These magnets are extremely important due to their ability to generate strong magnetic fields in electric motors, especially in electric vehicles and wind turbines, even in small sizes. They are also used in medical devices such as computer hard drives, loudspeakers, headphones and MRI scanners.
-IANS
SKT/
