Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
Kartavya Desk Staff
Source: PIB
Subject: Government Scheme
Context: The Union Cabinet has approved a ₹7,280-crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) to reduce import dependence and build India’s first integrated REPM ecosystem.
About Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM):
What the scheme is?
• A first-of-its-kind national initiative to develop a complete domestic supply chain—from rare-earth oxides to metals, alloys and finished high-performance REPMs.
Nodal Ministry: Ministry of Mines (with oversight from Department of Atomic Energy & NITI Aayog)
Targets:
• Establish 6,000 MTPA of integrated REPM manufacturing capacity
• Select 5 beneficiaries via global competitive bidding (each up to 1,200 MTPA)
• Build India’s first complete REPM value chain
Key features:
• Financial Outlay: ₹7,280 crore A total of ₹7,280 crore is allocated to build India’s first large-scale, end-to-end Rare Earth Permanent Magnet (REPM) manufacturing ecosystem.
• A total of ₹7,280 crore is allocated to build India’s first large-scale, end-to-end Rare Earth Permanent Magnet (REPM) manufacturing ecosystem.
• ₹6,450 crore: Sales-linked incentives (for 5 years) ₹6,450 crore will be disbursed as incentives based on actual magnet sales, encouraging high-quality production and global competitiveness.
• ₹6,450 crore will be disbursed as incentives based on actual magnet sales, encouraging high-quality production and global competitiveness.
• ₹750 crore: Capital subsidy for plant setup ₹750 crore supports the heavy initial investment needed for oxide-to-metal conversion, alloying, and sintering technologies.
• ₹750 crore supports the heavy initial investment needed for oxide-to-metal conversion, alloying, and sintering technologies.
• Duration: 7 years The entire scheme runs for 7 years, ensuring enough time for infrastructure creation, capacity building, and sustained production.
• The entire scheme runs for 7 years, ensuring enough time for infrastructure creation, capacity building, and sustained production.
• 2-year gestation to build facilities Manufacturers get two years to construct integrated plants, install metallurgical systems, and stabilise rare-earth processing lines.
• Manufacturers get two years to construct integrated plants, install metallurgical systems, and stabilise rare-earth processing lines.
• 5-year incentive period For five years after commissioning, companies receive sales-based incentives to scale production and reduce import dependence.
• For five years after commissioning, companies receive sales-based incentives to scale production and reduce import dependence.
• Integrated Manufacturing Covered The scheme supports the full rare-earth value chain under one roof, promoting efficiency, cost reduction, and supply-chain security.
• The scheme supports the full rare-earth value chain under one roof, promoting efficiency, cost reduction, and supply-chain security.
• Rare-earth oxides → metals → alloys → sintered REPMs It enables India to convert raw rare-earth oxides into metals, process them into alloys, and finally produce high-performance NdFeB sintered magnets.
• It enables India to convert raw rare-earth oxides into metals, process them into alloys, and finally produce high-performance NdFeB sintered magnets.
About Sintered Rare Earth Permanent Magnets (REPM):
What They Are?
• REPMs (especially NdFeB magnets) are the strongest commercial magnets globally, made by sintering rare-earth-based alloys like Neodymium-Iron-Boron.
Current Status in India:
• India has 6.9 million tonnes REE reserves (5th largest globally)
• Yet contributes ~1% to global production
• REPM demand is almost fully import-dependent
• China controls ~90% of global REPM supply
Key Features:
• High magnetic strength
• High heat resistance
• Compact size with superior performance
• No viable substitutes in high-performance applications