6 months ago
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The Union Cabinet connected Wednesday (November 26, 2025) approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ with a fiscal outlay of ₹7,280 crore. At present, India’s request for REPMs is met chiefly done imports. “This first-of-its-kind inaugural aims to found 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing successful India, thereby enhancing self-reliance and positioning India arsenic a cardinal subordinate successful the planetary REPM market,” a property merchandise read.
“REPMs are 1 of the strongest types of imperishable magnets and are captious for electrical vehicles, renewable energy, electronics, aerospace, and defence applications. The Scheme volition enactment the instauration of integrated REPM manufacturing facilities, involving conversion of uncommon world oxides to metals, metals to alloys, and alloys to finished REPMs,” it added.
The property merchandise further said that with rapidly increasing request from electrical vehicles, renewable energy, concern applications, and user electronics, India’s depletion of REPMs is expected to treble by 2030 from 2025.
“With this initiative, India volition found its first-ever integrated REPM manufacturing facilities, generating employment, strengthening self-reliance and advancing the nation’s committedness to execute Net Zero by 2070.”
The full fiscal outlay of the strategy is ₹7,280 crore, comprising a sales-linked incentives of ₹6,450 crore connected REPM income for 5 years and superior subsidy of ₹750 crore for mounting up an aggregate of 6,000 MTPA of REPM manufacturing facilities.
“The strategy envisions allocating the full capableness to 5 beneficiaries done a planetary competitory bidding process. Each beneficiary volition beryllium allotted up to 1,200 MTPA of capacity,” the property merchandise read, and elaborate that the full duration of the strategy volition beryllium 7 years from the day of award. This volition see a 2-year gestation play for mounting up an integrated REPM manufacturing facility, and 5 years for inducement disbursement connected the merchantability of REPM.
