(MENAFN- KNN India) New Delhi, Nov 27 (KNN) The Union Cabinet has approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs), representing a significant move toward establishing a domestic ecosystem for advanced magnet technologies.

With a financial outlay of Rs 7,280 crore, the scheme aims to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity in the country.

REPMs-among the strongest permanent magnets-are critical components in electric vehicles, renewable energy systems, consumer electronics, aerospace, and defence.

India currently meets most of its demand through imports, despite rapidly rising consumption driven by EV adoption and green energy expansion. Demand for REPMs is projected to double by 2030 from 2025 levels.

The approved scheme will facilitate the set-up of India's first fully integrated REPM manufacturing facilities.

These units will cover the entire value chain-from rare earth oxides to metals, metals to alloys, and alloys to finished magnets-strengthening self-reliance while enhancing India's strategic capabilities in high-performance materials.

Of the total outlay, Rs 6,450 crore will be provided as sales-linked incentives over five years, and Rs 750 crore as capital subsidy to establish the targeted 6,000 MTPA manufacturing capacity.

The capacity will be allocated to five beneficiaries, with up to 1,200 MTPA permitted per applicant through a global competitive bidding process.

The scheme will run for seven years, including a two-year gestation period for establishing manufacturing units and five years of incentive disbursal.

By building indigenous capability in REPM production, the initiative is expected to reduce import dependence and generate high-skilled employment.

(KNN Bureau)

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