India Greenlights Rs 7,280 Cr REPM Scheme

The Union Cabinet approved a Rs 7,280 crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, a move aimed at building a domestic, fully integrated REPM ecosystem and cutting heavy import dependence.

Rare Earth Permanent Magnets are among the strongest permanent magnets and are critical to EV motors, wind turbine generators, consumer electronics and sensitive defense and aerospace systems. The scheme targets an aggregate production capacity of 6,000 MTPA to meet rising strategic and industrial demand.

Financial support includes Rs 6,450 crore in sales-linked incentives (SLI) disbursed over five years and a Rs 750 crore capital subsidy to underwrite initial integrated manufacturing facilities. Capacity will be allocated to five beneficiaries via global competitive bidding, with up to 1,200 MTPA per developer. The programme spans seven years - a two-year gestation period for setup followed by five years of SLI payouts.

The policy emphasises integration across the value chain - conversion of rare-earth oxides to metals, metals to alloys, and final magnet manufacture - to reduce geopolitical risk, attract advanced technology, spur private investment and create skilled jobs.