The Indian government is finalizing the Request for Proposal (RFP) for a scheme to promote manufacturing of Sintered Rare Earth Permanent Magnets. Union Minister H D Kumaraswamy urged domestic and international players to participate in the Rs 7,280 crore initiative, aiming to build a self-reliant magnet ecosystem by 2047.
Government Finalizes Rare Earth Magnet Scheme RFP
The government is on the cusp of finalizing the Request for Proposal (RFP) for its ambitious Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets. Union Minister H D Kumaraswamy announced on Monday that the process is nearing completion, signaling a significant step toward bolstering domestic production capabilities.
Call for Participation
Kumaraswamy, who also holds the portfolio for Heavy Industries & Steel, chaired a stakeholder consultation. He directly encouraged both domestic and international industrial players to engage with the bidding process. The minister stressed that the scheme is crucial for establishing a resilient and globally competitive ecosystem for Rare Earth Permanent Magnets, aligning with the 'Viksit Bharat' vision for 2047.
Scheme Details and Financials
The initiative boasts a total financial outlay of Rs 7,280 crore. This includes Rs 6,450 crore allocated for sales-linked incentives on magnet sales and Rs 750 crore designated as a capital subsidy for setting up manufacturing facilities. The scheme targets an aggregate capacity of 6,000 million tonnes per annum (MTPA) and spans seven years from the award date. It features a two-year gestation period for facility establishment, followed by five years for incentive disbursement.
Industry Response
During the consultation, industry representatives conveyed their capabilities and expressed keen interest in participating in the scheme. Attendees included key officials from the Ministry of Heavy Industries, Department of Atomic Energy, IREL (India) Ltd, NMDC, and NFTDC, alongside various industrial stakeholders.
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