Information and Broadcasting Minister Ashwini Vaishnaw announced on Wednesday that the Cabinet has approved a scheme to promote manufacturing of rare earth magnets with an outlay of Rs 7,280 crore. The Financial Express on Tuesday reported that Centre is likely to approve the rare earth permanent magnets (REPM) manufacturing incentive scheme soon.
An official government release stated, “This first-of-its-kind initiative aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth PM IndiaPermanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market.”
India targets strategic self-reliance
The Cabinet, chaired by Prime Minister Narendra Modi, has approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’, aimed at building a production capacity of 6,000 metric tonnes per annum (MTPA) in India. Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said the scheme will boost domestic manufacturing of rare earth permanent magnets, which are critical components in sectors such as electric vehicles, aerospace, electronics, medical technology and defence.
Scheme to run for 7 years
The government plans to allocate the proposed capacity to up to five beneficiaries through a global competitive bidding process, with each eligible for a maximum of 1,200 MTPA. The scheme will run for seven years, including a two-year gestation period to establish fully integrated REPM manufacturing facilities and five years of incentives linked to actual sales.
