New Delhi: The government on Wednesday approved a Rs 7,280-crore scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM), marking India’s first effort to build an integrated REPM ecosystem and reduce import dependence. In a statement, the government said the scheme “aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market.”
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REPMs are among the strongest permanent magnets and are critical for electric vehicles, renewable energy, electronics, aerospace and defence applications.
According to the government, the scheme will support the development of integrated facilities “involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.”
The statement noted that India’s consumption of REPMs “is expected to double by 2030 from 2025” due to rapid growth in EVs, renewable energy, industrial equipment and consumer electronics. At present, most of this demand is met through imports.
“With this initiative, India will establish its first ever integrated REPM manufacturing facilities, generating employment, strengthening self-reliance and advancing the nation's commitment to achieve Net Zero by 2070,” the government said.
The scheme includes a financial outlay of Rs 7,280 crore, comprising sales-linked incentives of Rs 6,450 crore for five years and a capital subsidy of Rs 750 crore for setting up an aggregate 6,000 MTPA of REPM manufacturing capacity.
The government said the total capacity will be allocated “to five beneficiaries through a global competitive bidding process,” with each bidder eligible for up to 1,200 MTPA.
The scheme will run for seven years, including a two-year gestation period for project setup and five years of incentive disbursement.
Calling the scheme a “landmark step,” the government said it will strengthen domestic manufacturing, secure supply chains for key industries and enhance India’s competitiveness in global markets.
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“It embodies the government’s unwavering commitment to build a technologically self-reliant, globally competitive, and sustainable industrial base, in line with the vision of Viksit Bharat @2047,” the statement said.
By fostering an indigenous REPM industry, the initiative is also expected to support the Atmanirbhar Bharat Abhiyan and contribute to India’s Net Zero 2070 targets, said the government.