Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)

The Union Cabinet of India on Wednesday approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with a total outlay of ₹7,280 crore.

• Under this first-of-its-kind initiative, India aims to build domestic manufacturing capacity of 6,000 metric tonnes per annum (MTPA) for sintered rare-earth permanent magnets.
• The scheme includes ₹6,450 crore in sales-linked incentives over five years plus ₹750 crore in capital subsidy to set up integrated REPM manufacturing units.
• Production capacity will be allocated to five selected beneficiaries, each eligible for up to 1,200 MTPA. Selection will follow a global competitive bidding process.
• The scheme’s duration is 7 years: including a 2-year gestation period for setting up plants and 5 years for incentive disbursement.

Why this matters

• Rare-earth permanent magnets (REPMs) are among the strongest types of magnets and are critical inputs for sectors like electric vehicles (EVs), renewable energy (wind, solar), electronics, aerospace, and defence.
• Until now, India has met most of its REPM demand through imports. The new scheme aims to reduce import-dependence and build a self-reliant domestic supply chain.
• With REPM demand in India expected to double by 2030, domestic production capacity will secure supply for high-growth strategic industries.
• The initiative aligns with the government’s larger objectives — promoting industrial self-reliance (Atmanirbhar Bharat Abhiyan / “Self-Reliant India”), and contributing towards its Net Zero 2070 commitment via supporting green-technology sectors.

Source: DD News