The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹7,280 crore scheme to promote manufacturing of sintered rare earth permanent magnets (REPMs) in India. The move focuses on building integrated facilities capable of producing 6,000 metric tons of magnets annually, strengthening the country’s position in a market critical to clean energy and advanced electronics.
REPMs are essential components in electric vehicles, wind turbines, aerospace systems, defence equipment, and consumer electronics. With demand expected to double by 2030, India currently relies heavily on imports to meet its needs.
The scheme supports the full manufacturing lifecycle, from converting rare earth oxides into metals and alloys to producing finished magnets. The government plans to select up to five manufacturers through a global bidding process, with each allotted up to 1,200 MTPA of production capacity.
Of the total financial outlay, ₹6,450 crore is reserved as sales-linked incentives for a five-year period. An additional ₹750 crore will fund capital subsidies to set up new facilities. The scheme spans seven years: two years for building integrated plants followed by five years of incentive disbursement.
By developing an end-to-end ecosystem for REPM production, the initiative aims to support India’s industrial growth, reduce import dependence, and enable transition-focused sectors such as EVs and renewable energy. It also aligns with national goals, including the country’s Net Zero 2070 commitment and the broader vision of building a globally competitive manufacturing base under Viksit Bharat @2047.
