New Delhi [India], July 11 (ANI): Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), welcomed the central government initiatives to ramp up rare earth magnets production in India, particularly the incentives the latter is earmarking for.

ICEA is the apex industry body representing the entire electronics sector.

'We are extremely excited, although this will make set up capacities in the longer run, but the intention is very good and I think it is very timely because the industry is facing a bit of a crisis and the supply of magnets is quite difficult to procure if we set up independent Capacity here,' the ICEA Chairman told ANI.

'It will be a true triumph. We are very excited about this announcement. The magnets is a core industry, and the processing of rare earths and metals is a very core industry. It's a very good development. I think this is a substantial sum of money. The scheme is well articulated. We'll go through the details and we will fully support the government in this great initiative,' he added.

The central government has earmarked Rs 1,345 crore to incentivise rare earth magnets production in India, aimed at building domestic capacity when there are reports of global short supply.

'Some progress is going on (on the rare earth magnet production front). We have already allocated Rs 1,345 crore (for subsidy). We are on course to select the manufacturers,' Minister for Heavy Industries HD Kumaraswamy told reporters at a press conference earlier today.

Heavy Industries Secretary Kamran Rizvi, accompanying the minister, said the scheme has been circulated and it is currently under inter-ministerial consultation.

'We are interested only in magnets. Anybody who gives us magnets will get incentives,' the top official said.

It is expected that there will be at least 2 manufacturers who will participate in this program.

Early this April, China announced a decision to implement export controls on certain rare earth-related items, pushing a supply shortage across the world, including India.

India was in touch with the Chinese side, seeking predictability in the supply of rare earth metals -- which had been put under the export controls regime by the Xi administration.

China's overwhelming control of global rare earth processing - commanding over 90 per cent of the world's magnet production capacity - has created significant vulnerabilities for industries worldwide. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy systems.

Beyond China, there are only a few alternative suppliers of critical minerals.

Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget for 2024-25 on July 23, 2024. The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings.

Recently, Union Minister for Coal and Mines G Kishan Reddy said the central government is actively encouraging private companies to mine and explore critical minerals overseas and bring them back into the country to serve the needs of the domestic industry. (ANI)