The Government of India has approved the “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM)” with a financial outlay of ₹7,280 crore. The scheme aims to develop an integrated domestic REPM manufacturing capacity of 6,000 metric tonnes per annum, covering the full value chain from rare-earth oxides to finished magnets. This initiative is part of India’s push towards self-reliance in critical materials, supporting electric vehicles, renewable energy systems, and strategic industrial applications.
This initiative is intended to:
1. Enhance India’s self-reliance in critical materials for strategic sectors.
2. Strengthen supply chains for electric vehicles (EVs), renewable energy systems, electronics, aerospace, and defence.
3. Position India as a key global player in the REPM market.
4. Support Atmanirbhar Bharat, resilient strategic supply chains, and the country’s Net Zero 2070 vision.
What is a Rare Earth Permanent Magnet (REPM)?
Rare Earth Permanent Magnets (REPMs) are among the strongest permanent magnets with high magnetic strength, stability, and durability. They are essential for compact, high-performance magnetic applications, such as:
1. Electric vehicle motors
2. Wind turbine generators
3. Consumer and industrial electronics
4. Aerospace and defence systems
5. Precision sensors and actuators
The high performance of REPMs at small sizes makes them critical for advanced engineering and manufacturing, especially as India expands in clean energy, advanced mobility, and defence sectors.
India’s Current Landscape and Need for the Scheme
Rare-Earth Resources in India:
1. India has significant rare-earth mineral reserves, primarily monazite deposits across coastal and inland regions.
2. Total monazite deposits: 13.15 million tonnes, containing 7.23 million tonnes of rare-earth oxides (REO).
3. Distribution includes Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra.
4. Additional in-situ REO resources: 1.29 million tonnes in Gujarat and Rajasthan.
5. The Geological Survey of India has identified 482.6 million tonnes of rare-earth ore resources through exploration.
Current Industrial Gap:
1. Despite abundant resources, India relies heavily on imports, particularly from China, for permanent magnets:
2. Import dependence: 59.6%–81.3% (value) and 84.8%–90.4% (quantity) during 2022–2025.
3. Domestic REPM production is still nascent, creating a strategic need for domestic capacity.
Future Demand:
1. India’s REPM consumption is expected to double by 2030, driven by:
2. Electric mobility
3. Renewable energy deployment
4. Electronics manufacturing
5. Defence and aerospace applications
Rationale: Establishing domestic integrated REPM manufacturing is crucial for self-reliance, industrial competitiveness, and supply-chain resilience.
Core Elements of the Scheme
The scheme provides a structured framework for end-to-end REPM manufacturing:
1. Capacity Creation
Target: 6,000 MTPA integrated manufacturing capacity (from oxide feedstock to finished magnets).
Distribution: Up to five beneficiaries, each eligible for 1,200 MTPA, ensuring diversification and scale.
2. Incentives and Financial Support
Sales-linked incentives (SLI): ₹6,450 crore over five years.
Capital subsidy: ₹750 crore for establishing advanced, integrated REPM facilities.
3. Timeline
Total scheme duration: 7 years
2-year gestation period for facility setup
5 years of incentive disbursement, linked to production and sales.
4. Expected Outcomes
Timely capacity creation
Stable production and market development
Strengthened domestic REPM ecosystem
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