New Delhi, July 11 -- 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 Friday.

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 sa...