New Delhi, July 11 -- The Indian government has prepared a draft proposal for a subsidy scheme worth Rs.1,345 crore aimed at supporting domestic manufacturers of rare earth magnets, Union Minister for Heavy Industry and Steel HD Kumaraswamy said on July 11, reported Moneycontrol.

Kamran Rizvi, Secretary at the Ministry of Heavy Industry, stated that only those manufacturers who carry out end-to-end processing-from rare earth oxides to finished magnets-will be eligible for the subsidy.

This development follows China's decision in April to impose export restrictions on seven rare earth elements and finished magnets.

Rare earth magnets play a critical role in the manufacturing of permanent magnet synchronous motors (PMSMs), which are used...