In November 2025, the Union Cabinet chaired by the Prime Minister (PM) Narendra Modi approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets(REPM)’ with a financial outlay of Rs 7,280 crores (cr).
- This marks the Government of India’s(GoI) inaugural REPM initiative, aimed at strengthening self-reliance and positioning India as a major global player.
Exam Hints:
- What? Scheme to promote Manufacturing of Sintered REPMs approved
- Approved by: Union Cabinet
- Outlay: Rs 7280 cr, including sales incentive – Rs 6450 cr and capital subsidy Rs 750 cr
- Implementation Agency: Ministry of Heavy Industries (MHI).
- Eligibility: Both public & private sector companies.
- Capacity: 6000 MTPA
- Total Beneficiaries: 5, each 1200 MTPA
- Scheme Duration: 7 years – 2 years gestation and 5 years incentive disbursement
About REPM Manufacturing Scheme:
Production Capacity: The scheme aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated REPM manufacturing in India, covering the full value chain from rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.
Approach: The scheme will adopt a whole-of-government strategy, aligning with the Semiconductor Mission and National Critical Minerals Mission to strengthen the supply chain.
Implementation: This scheme is implemented by the Ministry of Heavy Industries (MHI).
Participation: Both public and private sector companies are eligible to take part.
Financial Outlay: The total financial outlay of the scheme is Rs 7280 cr, comprising a sales-linked incentives of Rs 6450 cr on REPM sales for five (5) years.
- The scheme provides a capital subsidy of Rs 750 cr for setting up an aggregate of 6,000 MTPA of REPM manufacturing facilities.
Allocation: The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process.
- Each beneficiary will be allotted up to 1,200 MTPA of capacity.
Scheme Duration: The total duration of the scheme will be 7 years from the date of award.
- This includes a 2-year gestation period for setting up an integrated REPM manufacturing facility, and 5 years for incentive disbursement on the sale of REPM.
Impact: India’s first integrated REPM facilities will boost employment, enhance self-reliance, and support the nation’s Net Zero 2070 goal.
About India’s REPM Manufacturing:
REPMs: They are one of the strongest types of permanent magnets and are essential for electric vehicles(EV), Renewable Energy(RE), electronics, aerospace, and defence applications.
- Rare earth deposits, known as placer deposits, are located along beaches, with India ranking among the top three countries globally for these resources.
Consumption Pattern: India’s annual demand for these magnets is about 4,000-5,000 tonnes (tn).
- India’s consumption of REPMs is projected to double between 2025 and 2030, and this growing demand is currently met largely through imports.
About Ministry of Heavy Industries (MHI):
Union Minister– Haradanahalli Devegowda (HD) Kumaraswamy (Constituency- Mandya, Karnataka)
Minister of State (MoS)- Bhupathi Raju Srinivasa Varma (Constituency- Narasapuram, Andhra Pradesh, AP)
