Why in the news?

  • Union Government launched Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with an allocation of ₹7,280 crore.

Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)

  • Aims: To establish India’s first integrated REPM production ecosystem with 6,000 MTPA capacity across five units. 
  • Target: It targets self-reliance in critical magnets used in EVs, renewables, defence, aerospace, and electronics, reducing import dependence (currently 100% for 4,000-5,000 TPA consumption).
  • Objectives
    • Develop end-to-end value chain: rare earth oxide to metal, alloy, and sintered magnets, addressing gaps in advanced processing.​
    • Create secure supply chains for strategic sectors, support Net Zero 2070, and position India as a global REPM player amid doubling demand by 2030.​
    • Attract private investment (expected 3x outlay) via incentives, fostering jobs and high-tech manufacturing
  • Features
    • Capacity Allocation: Five manufacturers selected via global competitive bidding; each up to 1,200 MTPA.​
    • Incentives: ₹6,450 crore sales-linked over five years; ₹750 crore capital subsidy (30% CAPEX support); two-year setup + five-year incentives.​
    • Implementation: Managed by a nodal agency under competitive procedure; focuses on environmental standards and full-stack facilities.
  • Significance: REPMs are vital for EV motors, wind turbines, and defence; scheme aligns with semiconductor/critical minerals missions, challenging China’s 90% dominance. It boosts Atmanirbhar Bharat, industrial growth, and export potential.

Source: The Hindu