Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
Objective: Establish 6,000 MTPA integrated REPM manufacturing capacity in India, reducing import dependence for critical minerals used in EVs, renewable energy, defence. Budget: ₹7,280 crore total — ₹6,450 crore (sales-linked incentives over 5 years) + ₹750 crore (capital subsidy). Approved: Union Cabinet on November 26, 2025. Key Features: - India's first-of-its-kind rare earth magnet manufacturing scheme - Capacity: 6,000 Metric Tons Per Annum (MTPA) - Up to 5 beneficiaries selected via global competitive bidding (1,200 MTPA each) - Duration: 7 years (2-year gestation + 5-year incentive period) - Covers integrated manufacturing: rare earth oxide to metal conversion - Strategic for Atmanirbhar Bharat and Net Zero 2070 commitments Applications: Electric vehicles, wind turbines, defence, aerospace, consumer electronics, medical devices Ministry: Ministry of Heavy Industries
- India's first rare earth permanent magnet (REPM) manufacturing scheme with ₹7,280 crore budget — ₹6,450 crore sales-linked incentives over 5 years plus ₹750 crore capital subsidy
- Approved by Union Cabinet on November 26, 2025 to establish 6,000 MTPA integrated REPM manufacturing capacity
- Up to 5 beneficiaries selected via global competitive bidding (1,200 MTPA each) with 7-year duration (2-year gestation + 5-year incentive)
- Covers integrated manufacturing from rare earth oxide to metal conversion; strategic for Atmanirbhar Bharat and Net Zero 2070
- Applications in electric vehicles, wind turbines, defence, aerospace, consumer electronics, and medical devices
- Ministry of Heavy Industries is the implementing ministry
What is the REPM scheme approved in November 2025?
It is India's first-of-its-kind scheme to promote manufacturing of Sintered Rare Earth Permanent Magnets, approved by the Union Cabinet on 26 November 2025 under the Ministry of Heavy Industries.
What is the budget outlay for the REPM scheme?
The total budget is Rs 7,280 crore, comprising Rs 6,450 crore in sales-linked incentives over 5 years and Rs 750 crore as capital subsidy to selected manufacturers.
What manufacturing capacity does the REPM scheme target?
The scheme targets establishing 6,000 Metric Tons Per Annum (MTPA) of integrated REPM manufacturing capacity in India, reducing import dependence for critical minerals.
How many beneficiaries are selected under the REPM scheme?
Up to 5 beneficiaries will be selected via global competitive bidding, with each receiving an allocation of 1,200 MTPA capacity. The scheme runs for 7 years with a 2-year gestation and 5-year incentive period.
What are the applications of rare earth magnets under the REPM scheme?
Sintered rare earth magnets are used in electric vehicles, wind turbines, defence, aerospace, consumer electronics and medical devices. The scheme is strategic for Atmanirbhar Bharat and Net Zero 2070 commitments.
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