NEW DELHI: Govt is working on an incentive scheme for rare earth magnets and is likely to subsidise processing units as it seeks to develop a domestic base to reduce its dependence on China. A decision on rolling out the scheme will be taken in 15-20 days, heavy industries and steel minister H D Kumaraswamy said on Tuesday.
Explaining the rationale, an official said, “There is hardly a 5% difference in prices of rare earth oxides and rare earth magnets… China wants to maintain its monopoly by keeping the price of magnets very low.” According to official estimates, public sector undertaking IREL (India) can supply enough rare earths to make 1,500 tonnes of magnets. “Converting these rare earths to magnets will take two years,” the official said.