Source: TOI
Context:
The Union Cabinet has approved a first-of-its-kind scheme to promote the manufacture of Rare Earth Permanent Magnets (REPMs) in India. The scheme aims to enhance self-reliance, reduce import dependence, and position India as a global player in critical magnet supply for strategic industries.
Scheme Overview
- Name: Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets
- Total outlay: ₹7,280 crore
- Sales-linked incentives: ₹6,450 crore over five years
- Capital subsidy: ₹750 crore for manufacturing facilities
- Total capacity target: 6,000 metric tonnes per annum (MTPA)
- Allocation: Up to 1,200 MTPA per beneficiary through global competitive bidding
- Duration: 7 years
- 2-year gestation period for setup
- 5-year incentive disbursement
Strategic Importance of REPMs
REPMs are critical components with applications in:
- Electric Vehicles (EVs)
- Renewable energy systems
- Electronics and aerospace
- Defence technologies
The scheme will support the entire production value chain, converting:
- Rare earth oxides → metals → alloys → finished REPMs
