New Delhi : The Union Cabinet, chaired by Prime Minister Narendra Modi, has cleared a landmark scheme worth ₹7,280 crore to promote the domestic production of Sintered Rare Earth Permanent Magnets (REPMs). This initiative marks India’s first integrated push to build a robust REPM ecosystem, aimed at reducing import dependence and positioning the country as a global leader in advanced magnet technology.
Key Highlights of the Scheme
- Capacity Creation: Establishment of 6,000 Metric Tons per Annum (MTPA) of REPM manufacturing facilities.
- Financial Outlay: ₹6,450 crore allocated as sales‑linked incentives over five years, plus ₹750 crore as capital subsidy.
- Implementation Period: Seven years — including a two‑year setup phase and five years of incentive disbursement.
- Beneficiaries: Capacity to be distributed among five companies through global competitive bidding, with each allotted up to 1,200 MTPA.
Why REPMs Matter
Rare Earth Permanent Magnets are among the strongest magnets available and are critical for:
- Electric vehicles
- Renewable energy systems
- Consumer electronics
- Aerospace and defence applications
Currently, India’s demand for REPMs is largely met through imports. With consumption expected to double by 2030, the scheme will help establish India’s first integrated REPM facilities — converting rare earth oxides into metals, alloys, and finished magnets.
Strategic Impact
- Strengthens supply chains for automotive, defence, and aerospace sectors.
- Generates employment in high‑tech manufacturing.
- Supports Atmanirbhar Bharat and India’s Net Zero 2070 climate commitment.
- Enhances competitiveness in global markets while securing domestic industrial needs.
Vision for the Future
The government sees this initiative as a cornerstone of Viksit Bharat @2047, building a technologically self‑reliant and globally competitive industrial base. By fostering indigenous REPM production, India aims to reduce foreign exchange outflows, ensure supply chain resilience, and emerge as a trusted hub for advanced materials
