NEW DELHI: The government has stepped in to support the auto and component industry’s efforts to procure rare earth magnets from Chin,a with companies submitting End User Certificate (EUC) to Beijing, certifying no diversion of the shipment towards defence or weapons production.The commerce department and the ministry of external affairs have been engaged in the process of seeking time for an interface of the Indian industry with representatives of the Chinese government. “We are mindful of the concerns of the industry, especially as manufacturing schedules are likely to be disrupted if the supplies do not resume in some time,” one of the sources said.A senior government official said that commerce secretary Sunil Barthwal recently held consultations with auto sector representatives and over the next few weeks, a delegation of executives from industry bodies is expected to go to China, with the Indian embassy in Beijing facilitating the exercise.
The government, however, wants to play the role of a “facilitator” in the process, clearly demarcating it from being seen as a G2G (government-to-government) negotiation. “The idea is to involve the respective stakeholders and ministries for a concerted effort to expedite the approval process. The industry has already submitted the requisite documents related to the matter.”Local industry has argued it is working on developing capabilities, but it is seen to be a massive challenge. “Developing indigenous supplies and capabilities is crucial, but it’s a complex process requiring large-scale investments. Also, mitigating challenges of radioactive materials during the extraction process is also a critical factor,” said Alok Perti, former coal secretary and now a senior board advisor with B2B mining and metal industry body MMPI. “Providing viability gap funding like PLI schemes by the government, encouragement to undertake research with countries like Russia, Australia, is also relevant.”Source said that auto industry bodies, the Society of Indian Automobile Manufacturers (Siam), that represents product companies as well as the Automotive Components Manufacturers Association (ACMA), have been carrying out direct interface with government on the matter, even while companies have submitted their petitions through the route mandated by the Chinese government.The applications have reached China, and companies are eagerly awaiting movement, officials of at least four large companies told TOI. The industry is hopeful of a “positive result” following the meetings that Chinese vice foreign minister Sun Weidong, who is on a two-day visit to India, has had with his Indian counterparts.