New Delhi, Dec. 20 -- About six months after China first began restricting the export of specific rare earth magnets, rattling manufacturers around the world, India announced a Rs.7,280-crore incentive package on 26 November to set up five plants to produce rare earth magnets in the country.

With the scheme notified this week, it's clear what the government is trying to do-create a midstream industry that uses refined rare earth oxides to make magnets for sectors such as defence, electronics, renewable energy, and electric vehicles.

But how will the incentive package actually play out in a complex web of stakeholders that include state-run India Rare Earths Ltd (IREL)?

Mint explains the goal of the scheme, the roles of various stakehol...