In a significant push towards technological self-reliance, the Union Cabinet, headed by Prime Minister Narendra Modi, has approved a ₹7,280 crore scheme to promote the manufacturing of sintered rare earth permanent magnets (REPM) in India. This landmark initiative aims to establish an integrated manufacturing capacity of 6,000 metric tons per annum over a seven-year period.
REPMs are critical components used extensively in electric vehicles, renewable energy technologies such as wind turbines, consumer electronics, aerospace, and defence systems. Currently, India relies heavily on imports of these magnets, primarily from China. The newly approved scheme is expected to drastically reduce this dependence by encouraging domestic production through sales-linked incentives and capital subsidies.
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The scheme will allocate production capacity to five selected beneficiaries through a global competitive bidding process, with each unit capable of producing up to 1,200 metric tons per year. The seven-year plan includes a two-year gestation period for setting up manufacturing facilities, followed by five years of incentive disbursement based on actual sales.
