Cabinet Decisions / Cabinet Approves Rare Earth Magnet Manufacturing Scheme and Pune Metro Phase-2 Expansion

The Union Cabinet, in a significant meeting held on Wednesday, has taken crucial decisions aimed at bolstering India's industrial capabilities and urban infrastructure. Chaired by Prime Minister Narendra Modi, the cabinet approved a new scheme designed to promote the manufacturing of rare earth permanent magnets, a strategic move towards self-reliance, while concurrently, the second phase of the Pune Metro Rail Project received a green light for two new lines, signaling a major upgrade for the city's public transportation network. These approvals are set to drive economic growth, enhance technological independence, and improve the quality of life for urban commuters.

Boosting Rare Earth Magnet Manufacturing

The central government has given its assent to the ‘Scheme for Promotion of Manufacturing. Of Sintered Rare Earth Permanent Magnets,’ backed by an incentive package of 7,280 crore rupees. This initiative is a cornerstone of India's efforts to reduce its reliance on imports for these critical components. Information and Broadcasting Minister Ashwini Vaishnav stated that the scheme aims to establish a strong domestic manufacturing capacity of 6,000 metric tonnes per annum (MTPA) for rare earth permanent magnets, while this capacity building is vital for various high-tech industries within the country.

Strategic Applications and Capacity Allocation

Rare earth magnets are indispensable in a multitude of advanced and strategic sectors, including electric vehicles, aerospace, electronics, medical devices, and defense, while their increased domestic production will Importantly strengthen these key industries. Under the newly approved scheme, the total 6,000 MTPA capacity will be allocated to five selected companies through a global competitive bidding process. Each beneficiary company will be eligible to receive a maximum capacity of 1,200 MTPA, ensuring a diversified and competitive manufacturing landscape.

Pune Metro Rail Project Phase-2 Expansion

In a major development for Pune, the Union Cabinet has approved two new lines under Phase-2 of the Pune Metro Rail Project. These include Line 4 (Kharadi–Hadapsar–Swargate–Khadakwasla) and Line 4A (Nal Stop–Warje–Manik Bagh). These lines are designed to connect critical areas across Pune, Importantly. Enhancing the city's urban mobility infrastructure and supporting its rapid growth.

Enhancing Traffic Flow and Connectivity

The two new metro lines will collectively span approximately 31. 6 kilometers and feature 28 elevated stations. This ambitious project is estimated to cost around 9,857. 85 crore rupees and is projected to be completed within five years, while the funding for this vital infrastructure development will be jointly provided by the Government of India, the Government of Maharashtra, and external funding agencies, underscoring the collaborative effort behind this initiative. The introduction of these new metro lines is expected to substantially alleviate traffic congestion on several busy routes in Pune.

These include areas such as Kharadi IT Park, Hadapsar Industrial Area, Swargate, Sinhagad Road, Karve Road, and the Mumbai–Bengaluru Highway. The metro expansion will promote faster, safer, and greener transportation options within the city. Plus, these lines will seamlessly integrate with existing metro corridors—Swargate (Line 1), Kharadi Bypass, and Nal Stop (Line 2)—providing commuters with a smooth and interconnected travel experience, while an interchange facility will also be available at Hadapsar Railway Station, facilitating multi-modal transport.

Projected Ridership Growth and Future Impact

The project, to be implemented by Maha-Metro, anticipates a significant surge in daily ridership. The combined daily ridership is projected to increase from 4. 09 lakh in 2028 to over 11. 7 lakh by 2058. With this approval, Pune's metro network will extend beyond 100 kilometers, promising the city a more efficient, rapid, and sustainable public transport system in the future, while maha-Metro will oversee all aspects from construction to system operations, ensuring efficient execution of the project.

Capacity Enhancement on Mumbai-Pune Rail Route

Union Minister Ashwini Vaishnav also highlighted another crucial railway approval. He announced that the newly sanctioned third and fourth rail lines between Badlapur. And Karjat in Maharashtra would Notably boost capacity on the busy Mumbai-Pune route. Most of the work on the Diva-Badlapur four-line section is already complete or operational. This enhancement will further strengthen the critical corridor connecting Mumbai to Pune and extending onwards to Hyderabad, Bengaluru, and Chennai via Wadi and Guntakal. This decision is poised to improve rail connectivity between western and southern India, benefiting both freight and passenger traffic.

VIDEO | Delhi: “The newly approved third and fourth rail lines between Badlapur and Karjat in Maharashtra will significantly expand capacity on the busy Mumbai–Pune route. With much of the Diva–Badlapur four-line work already completed or commissioned, this addition strengthens… pic.twitter.com/qBpJjFSOuO

— Press Trust of India (@PTI_News) November 26, 2025