Meetings underway to mitigate Rare Earth magnet crisis: Heavy Industries Minister H D Kumaraswamy
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Popular in Economy
India is exploring options to mitigate the crisis due to rare earth magnet supply disruptions, Union Heavy Industries Minister H D Kumaraswamy said Tuesday.'We are working on it (addressing the rare earth magnet crisis ). Midwest , a Hyderabad based company, has shown interest. They are targeting 500 tonne rare earth magnet production by this year end, aiming for 5000 tonne production in the next,' Kumaraswamy told journalists Tuesday.At the sidelines, officials said an incentive scheme for rare earth magnets is likely to subsidise processing units. India's own rare earth magnet production is also anticipated in the coming two years.Indian automobile players had red-flagged curbs on supplies of rare earth derived permanent magnets.Responding to queries on the current situation, a senior official said, 'As of today, things look better. Nobody has come back to us saying I am halting production.'His comments follow meetings of Chinese Foreign minister, Wang Yi with India's National Security Advisor, Ajit Doval.In a statement, a Spokesperson of China's Foreign Affairs Ministry said, 'China and India should adhere to the important consensus that both sides are opportunities for each other's development, pose no threat to one another, and are partners rather than rivals.'Officials said Indian companies can also import fully assembled components from China with no restrictions. 'Existing government incentive schemes such as those for auto component and electric vehicle manufacturing already have exemptions for allowing these imports,' the official added.Besides importing minerals, India is also preparing to incentivise domestic processing of rare earth supply chains. Explaining the need for incentives, the official said, 'There is a hardly 5% difference in the 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 1500 tonnes of magnets.'Converting these rare earths to magnets will take two years,' the official added.Kumaraswamy also launched the application process for Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). This scheme offers lower duties for import of high-end electric cars if automobile majors invest in India.Commenting on how participation is being drawn towards SPMEPCI, the official said, 'We are writing to embassies of countries which have established automotive industries, encouraging them to participate in the scheme.'Invitations will be extended to Vietnam, Germany, Czech Republic, United Kingdom, and United States of America, the official added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
17 minutes ago
- Time of India
Govt eyes sops for rare earth magnets to reduce dependence on China
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. Consultations with stakeholders are underway to determine the quantum of subsidy to be offered under the scheme. "One Hyderabad-based company... they are showing interest. They have promised that they will deliver 500 tonnes by this year-end (Dec). We will have discussions with the mines minister," Kumaraswamy said. China's recent restrictions on exports have caused widespread disruption, particularly for auto players. While govt and industry are seeking alternative sources of procurement, officials said 30 auto companies sought authorisation from the Directorate General of Foreign Trade to import rare earth magnets from China a fortnight ago, so that production is not impacted. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
17 minutes ago
- Time of India
Govt launches scheme for imported EVs
NEW DELHI: Govt on Tuesday opened the window for auto companies to sell imported EVs by paying lower duty in return for promising to invest in the country. While Tesla has opted to stay out, doors have been shut for Chinese companies, such as BYD. Tired of too many ads? go ad free now Heavy industries and steel minister H D Kumaraswamy said four-five companies have shown interest, while Tesla will sell its cars through its showrooms after importing them at full duty. The application window will remain open till early Oct. Heavy industries secretary Kamran Rizvi said OEMs applying under the scheme and availing of lower import duty will have to roll out a car with at least 25% domestic value addition within three years and increase it to 50% within five years.
The Print
an hour ago
- The Print
Pakistan developing a nuclear missile that could reach US, new report reveals
While the report focuses on the growing nuclear alliance between Russia and China, which is a worry for the US, it adds, 'Although Pakistan claims its nuclear programme is strictly focused on deterring India, which enjoys conventional military superiority, US intelligence agencies have concluded that the Pakistani military is developing an ICBM that could reach the continental United States.' Citing US intelligence sources, the report states that the US is concerned about Pakistan's growing nuclear abilities, adding that if Pakistan does acquire an ICBM (Intercontinental Ballistic Missile), 'Washington will have no choice but to treat the country as a nuclear adversary.' New Delhi: Pakistani military is developing a nuclear missile that could reach the continental US, a new report by Foreign Affairs states. In acquiring such a capability, Pakistan may be seeking to deter the United States from either trying to eliminate its arsenal in a preventive attack or intervening on India's behalf in a future Indian-Pakistani conflict, the report adds. It further adds: 'Regardless, as US officials have noted, if Pakistan acquires an ICBM, Washington will have no choice but to treat the country as a nuclear adversary—no other country with ICBMs that can target the United States is considered a friend. In short, mounting nuclear dangers now lurk in every region of vital interest to the United States.' As China races to expand its arsenal and Russia abandons decades of arms control, the US finds itself facing a dual challenge—deterring two nuclear-armed peers simultaneously while managing rising threats from North Korea, Iran, and potentially, Pakistan. Pakistan's nuclear weapons programme began in the early 1970s, mainly driven by regional tensions, especially after India's first nuclear test in 1974. The country officially joined the ranks of nuclear-armed states in 1998, following a series of six nuclear tests. Despite facing significant international criticism, particularly from the United States, Pakistan has remained firm in its stance, viewing its nuclear arsenal as a critical deterrent against India, especially in light of continued tensions over Kashmir. The programme has evolved to include a range of nuclear weapons, including tactical options designed for battlefield use. Pakistan has not signed the Nuclear Non-Proliferation Treaty (NPT) or the Comprehensive Test Ban Treaty (CTBT), reflecting its emphasis on national sovereignty over its nuclear policy. At present, according to reports, the country is estimated to hold nearly 165 nuclear warheads. (Edited by Madhurita Goswami) Also Read: Was it crypto or counter-terror? Pakistanis can't decide what led to Munir-Trump lunch
