The Union Government has approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets with a financial outlay of ₹7,280 crore. For exam preparation, it is important because it links industrial policy, Atmanirbhar Bharat, strategic supply chains and high-technology manufacturing. The scheme aims to build India’s first integrated domestic REPM manufacturing ecosystem, covering the conversion of rare earth oxides to metals, metals to alloys, and alloys to finished magnets.
The relevance of these magnets goes beyond minerals and manufacturing. REPMs are used in electric vehicles, wind turbines, electronics, aerospace and defence equipment. This makes the topic useful for Economy, Science and Technology, energy transition and defence self-reliance. India’s demand for REPMs is currently met primarily through imports, and consumption is expected to double by 2030 from the 2025 level. Domestic capacity is therefore a way to reduce supply risk for industries and strengthen high-tech manufacturing.
The scheme envisages 6,000 Metric Tons per Annum of integrated REPM manufacturing capacity. The total outlay includes ₹6,450 crore as sales-linked incentives and ₹750 crore as capital subsidy. The total capacity will be allocated to 5 beneficiaries through a global competitive bidding process, with each beneficiary eligible for up to 1,200 MTPA capacity. The scheme will run for 7 years from the date of award, including a 2-year gestation period for setting up integrated facilities and 5 years for incentive disbursement on REPM sales. For static GK linkage, connect this scheme with rare earth elements, critical minerals, electric mobility, renewable energy and India’s Net Zero 2070 commitment.