India, Oct. 9 -- The expenditure finance committee of the finance ministry has reportedly approved INR 7,300 Cr ($822.3 Mn) incentive scheme aimed at catalysing domestic manufacturing of rare earth magnets.

The scheme will now be sent to the Union cabinet for approval. It will earmark INR 6,500 Cr for capital expenditure and INR 800 Cr for operational expenditure, offering substantial support for companies setting up end-to-end rare earth magnet processing units and supply chains across the country, ET reported.

"It is expected that India's rare earth magnet production will reach 6,000 tonnes by 2030 through these incentives," an official was quoted as saying, adding that this would be enough to meet domestic requirements.

Notably, the...