Delhi, 26 November (H.S.): The Union Cabinet on Wednesday approved a strategic ₹7,280 crore initiative to foster the domestic production of Sintered Rare Earth Permanent Magnets (REPMs), aiming to establish India as a key player in the global market. The decision, announced by Information and Broadcasting Minister Ashwini Vaishnaw, addresses the nation's reliance on imports for these critical components.

Strategic Importance

REPMs are among the strongest types of permanent magnets and are indispensable for a wide range of modern technologies. They are vital for manufacturing electric vehicles, wind turbines, consumer electronics, and advanced aerospace and defense applications. With demand in India projected to double between 2025 and 2030, this initiative is a significant step towards self-reliance and securing the nation's supply chain.

National Goals

This first-of-its-kind initiative is designed to establish an integrated REPM manufacturing capacity of 6,000 metric tons per year in India. The move is expected to generate significant employment, bolster the Atmanirbhar Bharat (self-reliant India) mission, and contribute to the country's commitment to achieving net-zero emissions by 2070.

The plan will support the creation of facilities that cover the entire production cycle, from converting rare earth oxides into metals, then to alloys, and finally into finished magnets.

Scheme Framework

The plan has a total financial outlay of ₹7,280 crore. This includes a sales-linked incentive of ₹6,450 crore over five years and a capital subsidy of ₹750 crore to support the establishment of manufacturing facilities. The government aims to select five beneficiaries through a global competitive bidding process, with each being allocated a capacity of up to 1,200 metric tons annually .

The total duration of the scheme is seven years, which incorporates a two-year period for setting up the integrated manufacturing plants and a five-year period for providing incentives on sales.

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Hindusthan Samachar / Jun Sarkar