Preparation to reduce dependence on China, Modi cabinet approves Rs 7,280 crore plan

Rare Earth Permanent Magnets Scheme India: In the cabinet meeting chaired by PM Narendra Modi on Wednesday, 26 November, a historic step has been taken regarding the manufacturing of rare earth permanent magnets. Under this, the government has decided to approve a new scheme of Rs 7,280 crore to increase the manufacturing of rare earths.

This is the first scheme of its kind being started in India. The government aims to set up a 6,000 metric tonne per annum integrated rare earth permanent magnet (REPM) manufacturing unit in the country. Talks in this regard were going on for the last few days.

6,000 metric tons will be produced

Giving information about this scheme, Information and Broadcasting Minister Ashwini Vaishnav said that ‘Sintered Rare Earth Permanent Magnets Manufacturing Promotion Scheme’ has been started to promote the production of rare earth permanent magnets in the country.

Under this initiative, a target has been set to create 6,000 metric tons capacity every year. So that India can take strong steps towards self-reliance in this important sector. Under this scheme, there is a plan to set up a state-of-the-art integrated REPM manufacturing plant.

China is the king of rare earths

About 80 percent of the rare earths present in the world are under the control of China. Many countries of the world including India are largely dependent on China for rare earths. Recently, China had announced a ban on rare earths and banned its export.

Talking about the figures, India has imported 870 tonnes of rare earth magnets from China in the financial year 2024-25. However, with today’s step of the Indian government, it is fully expected that India’s dependence on China will reduce in the coming times. Also, India will be able to take strong steps towards self-reliance in this important sector.

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