Cabinet Approves ₹7,280 Crore Scheme to Boost Rare Earth Magnet Manufacturing, Greenlights Pune Metro Expansion
In a move to bolster domestic manufacturing and enhance urban infrastructure, the Union Cabinet has approved a ₹7,280 crore incentive scheme to promote local production of rare earth magnets and sanctioned the expansion of the Pune Metro Rail Project. The decisions, made during a recent cabinet meeting, are expected to significantly impact India's self-reliance in critical sectors and improve urban mobility in Pune.
Boosting Rare Earth Magnet Manufacturing
The approved scheme, titled the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets', aims to establish a capacity of 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India. This initiative is designed to reduce India's reliance on imports, particularly from China, and position the country as a major player in the global REPM market. REPMs are essential components in various sectors, including electric vehicles (EVs), renewable energy, electronics, aerospace, and defense applications.
The scheme will be implemented over seven years, including a two-year gestation period for developing manufacturing units and five years for disbursing incentives based on REPM sales. It comprises ₹6,450 crore in sales-linked incentives and ₹750 crore in capital subsidies. The government plans to select five beneficiaries through global competitive bidding, each with an allocation of up to 1,200 MTPA manufacturing capacity.
India's consumption of REPMs is projected to double between 2025 and 2030, driven by the increasing demand in e-mobility, clean energy, and advanced industrial technologies. Currently, most of India's REPM demand is met through imports. This scheme is expected to reverse that trend by incentivizing local production and supporting the Atmanirbhar Bharat initiative, aligning with India's commitment to achieving Net Zero carbon emissions by 2070.
Pune Metro Expansion Approved
The Union Cabinet has also approved the expansion of the Pune Metro Rail Project, Phase 2, which includes the construction of two new elevated corridors. These corridors are extensions of the existing Vanaz–Ramwadi corridor under Phase-1 and aim to improve east-west connectivity across the city. The two new corridors are:
- Vanaz to Chandani Chowk (Corridor 2A)
- Ramwadi to Wagholi/Vitthalwadi (Corridor 2B)
The expansion will span 12.75 km and include 13 stations, connecting fast-developing suburbs such as Chandani Chowk, Bavdhan, Kothrud, Kharadi, and Wagholi. The project is estimated to cost ₹3,626.24 crore and is scheduled for completion within four years. The cost will be shared equally by the Centre, the Maharashtra government, and external bilateral/multilateral agencies.
The expansion is projected to increase the daily ridership for the entire Line 2 to 0.96 lakh in 2027, 2.01 lakh in 2037, 2.87 lakh in 2047, and 3.49 lakh in 2057. The new corridors will also integrate with Line-1 (Nigdi–Katraj) and Line-3 (Hinjewadi–District Court) at the District Court Interchange Station, enabling seamless multimodal urban travel. Intercity bus services from cities like Mumbai and Bengaluru will be integrated at Chandani Chowk, while those from Ahilya Nagar and Chhatrapati Sambhaji Nagar will connect at Wagholi, allowing passengers to easily access Pune's Metro system.
The project will be implemented by the Maharashtra Metro Rail Corporation Limited (Maha-Metro). The expansion aims to unlock Pune's economic potential, enhance its urban transport infrastructure, and contribute significantly to sustainable and inclusive development across the metropolitan region.
