Cabinet approves rare earth permanent magnet scheme; Rs 9,857.85 crore Pune metro expansion gets cabinet nod

The Union Cabinet approved a Rs 7,280 crore rare earth permanent magnet scheme, two railway multi-tracking projects, and expansion of the Pune metro. Announcing the decisions, railways, information technology, and information broadcasting minister Ashwini Vaishnaw said upstream industries in defence, electronics, and electric vehicle manufacturing will be the key beneficiaries of the permanent magnet incentives. Underscoring the relevance of this scheme, the minister said contemporary geopolitics has increased the importance of rare earths.

“India has among the highest reserves of rare earth. It will be among the leading producers of permanent magnets in the coming years,” he said adding the relevance of these magnets was recently established in the dispute between United States and China.

An official statement said this ‘first-of-its-kind initiative’ aims to establish 6,000 Metric Tons per Annum of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India.


According to Saurabh Agarwal, Partner & Automotive Tax Leader, EY, disciplined implementation is needed to ensure success of this scheme. “We must prioritize technology access, establish high-quality processing capabilities, and strictly uphold responsible mining and ESG standards,” he told ET.

A Rs 9,857.85 crore Line 4 (Kharadi–Hadapsar–Swargate–Khadakwasla) and Line 4A (Nal Stop–Warje–Manik Baug) under Phase-2 of the Pune Metro Rail Project also got the cabinet nod. The project will complete within five years and be jointly funded by the centre, Maharashtra state, and external funding agencies. According to official estimates, the daily ridership on Line 4 and 4A combined is expected to be 4.09 lakh in 2028, rising to nearly 7 lakh in 2038, 9.63 lakh in 2048, and over 11.7 lakh in 2058.

Vaishnaw also announced doubling of the Devbhumi Dwarka (Okha) – Kanalus Doubling railway line in Gujarat and the third and fourth line of the Badlapur – Karjat section in Maharashtra. These two projects will cost approximately Rs 2,781 crore.

The approved doubling from Kanalus to Okha (Devbhoomi Dwarka) would provide enhanced connectivity to Dwarkadhish temple facilitating access to key pilgrimage destination and lead to all round development of Saurashtra region, a statement said.