- Cabinet approves ₹7,280 crore scheme for domestic REPM production.
- India to develop 6,000 MTPA integrated magnet manufacturing capacity.
- Scheme includes sales-linked incentives and capital subsidy.
- Move aimed at reducing import dependence and supporting EV, defence, aerospace sectors.
GG News Bureau
New Delhi, 26th Nov: The Union Cabinet chaired by Prime Minister Narendra Modi has approved a ₹7,280 crore scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM), marking India’s first initiative to build an end-to-end REPM ecosystem.
The scheme proposes the creation of 6,000 MTPA integrated REPM manufacturing capacity, a move expected to strengthen supply chains for electric vehicles, renewable energy systems, aerospace applications, electronics and defence industries. REPMs, known for their high magnetic strength, are essential components in modern technology and strategic sectors.
India’s demand for REPMs is projected to double by 2030, while the country currently relies heavily on imports. The new scheme aims to address this gap by enabling domestic production, enhancing self-reliance and positioning India as a competitive player in the global REPM market.
The government has allocated ₹6,450 crore as sales-linked incentives for five years and ₹750 crore as capital subsidy for establishing the integrated facilities. The total 6,000 MTPA capacity will be distributed among five beneficiaries selected through a global competitive bidding process, with each eligible for up to 1,200 MTPA.
The scheme will run for seven years, including a two-year gestation period for setting up the facilities and five years for incentive disbursement. The manufacturing chain will cover the complete process — converting rare earth oxides to metals, metals into alloys and alloys into finished magnets.
Officials said the initiative represents a major step towards Atmanirbhar Bharat, supporting India’s ambition to secure critical materials needed for industrial growth and its Net Zero 2070 commitment. The scheme is also aligned with the government’s vision of Viksit Bharat @2047, aimed at building a technologically advanced and globally competitive industrial base.
