L&T bids for India rare-earth magnet incentives

Larsen & Toubro, India's largest infrastructure company, plans to bid for the Indian government's 72.8-billion-rupee ($764 million) incentive program to manufacture rare-earth magnets domestically. The move aims to reduce India's reliance on imports and loosen China's control over the critical component, which accounts for about 90% of global production. The program has received 15 bids so far, including a consortium of Japan's Proterial and two Indian automakers. L&T's entry would diversify its business beyond construction and heavy engineering, and support its plan to build electric vehicle traction motors locally, for which it has partnered with Israel-based EVR Motors. India approved a seven-year program with sales-linked incentives and capital subsidies to establish domestic capacity of 6,000 metric tons annually, supporting about five companies.