Centre to offer incentives for domestic production of rare earth magnets soon
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The government is preparing fiscal incentives to encourage domestic production of rare earth magnets in the face of recent disruptions caused in their supply, currently dominated by China, Union Minister H D Kumaraswamy said on Friday.
The minister for Heavy Industries and Steel also said a scheme is in the works to provide “targeted support” to the industry for its capital as well as operational expenditure, which would help bridge cost gaps, offer relief from high tariffs on key equipment and ensure continuity of supply in the face of rising global restrictions.
“The ministry is actively addressing vulnerabilities in critical raw materials. Recognising that rare earth magnets are central to EV motors and currently dominated by Chinese supply, we are preparing fiscal incentives to encourage domestic production.
