Modi-led cabinet may approve ₹7,300 crore incentive scheme for rare earth magnets, sources say

In a significant move to boost strategic manufacturing, a cabinet meeting chaired by Prime Minister Narendra Modi has begun and is expected to approve an incentive scheme for the production of rare earth permanent magnets (REPMs), reported CNBC AwaazCredit for this is being given to the sources.

According to people aware of the discussions, the proposal includes an incentive package of ₹7,300 crore aimed at creating a complete domestic ecosystem for rare earth magnet manufacturing.

The scheme is designed to reduce import dependence and support industries requiring advanced magnet technology.

Sources said the plan targets an annual production capacity of up to 6,000 tonnes, supported through fiscal incentives and policy support. The scheme is proposed to run for seven years, giving companies time to gain financial visibility and scale operations, the people cited above said.

A formal announcement is expected after cabinet approval.

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