India has 7.23 million tonnes of rare earth oxides in monazite sands and 1.29 million tonnes in hard rock, but extraction is challenging due to low grades and regulations.
The Union Cabinet has approved a Rs. 7,280 crore scheme to set up 6,000 MTPA of sintered rare earth permanent magnet manufacturing capacity.
The scheme includes a sales-linked incentive of Rs. 6,450 crore and a capital subsidy of Rs. 730 crore to boost domestic magnet production.