India to challenge China on rare earth magnets, soon to announce schemes for...

Though China has agreed to lift the ban on the sale of its rare earth magnets in a deal with the US, it is yet to announce a similar relief for Indian companies. New Delhi has decided to take on the dragon in its own way. The Union government will soon announce a slew of subsidies and other incentives for its companies to explore, mine and refine rare earths and manufacture its magnets. Taking to reporters, the Minister for Heavy Industries and Steel, HD Kumaraswamy Tuesday hinted at rolling out a scheme to subsidise the domestic production of rare earth magnets in 15-20 days. 

HS Kumarswamy says...

He said, "One Hyderabad-based company... they are showing interest. They have promised that they will deliver 500 tonnes by this year-end, December. We have (had) discussions with the Mines Minister. Our Secretary and our ministry are working on, ultimately, a decision (will be taken) I think within 15-20 days."  Secretary of the Heavy Industries Ministry Kamran Rizvi said the government is holding consultations with the stakeholders to determine the quantum of subsidy to be offered under the scheme. If the total incentives involved cross Rs. 1,000 crore, the scheme will be sent to the Union Cabinet for approval. He also said that the actual production of rare earth magnets will take about two years. To make alternative arrangements in the interim period, the government along with the industry, is looking at other sources of procurement in the interim period, including Japan and Vietnam.

Subsidy for investment

Under the government scheme, the subsidy may facilitate investment for establishing processing facilities for companies to convert rare earth oxides into magnets. Indian Rare Earth Magnets Ltd, a PSU under the Ministry of Atomic Energy, is the sole repository of rare earths in India. 

What are Rare earth materials?

Rare earth materials are a group of 17 elements that are crucial for many modern technologies. They are used in automobiles, automotive parts, defence hardware like missiles, drones, fighter jets and satellites. They may appear scarce, but they are found abundantly in the Earth's crust. The problem lies in the fact that they are dispersed and it is difficult to extract them in economically viable quantities. 

(With inputs from PTI.)