Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) approved with an outlay of ₹7,280 crore

Key facts

• The Government 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 establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity in India, covering the full chain from rare-earth oxides to finished magnets.
• The total capacity will be distributed among up to five beneficiaries through a global competitive bidding process, with each beneficiary eligible for up to 1,200 MTPA, ensuring diversification along with adequate scale.
• The scheme includes a strong incentive structure, with ₹6,450 crore earmarked as sales-linked incentives for REPM production over five years.
• A ₹750 crore capital subsidy will support the establishment of advanced, integrated REPM manufacturing facilities.
• The scheme will be implemented over seven years, comprising a two-year gestation period for setting up the integrated REPM facilities followed by five years of incentive disbursement linked to REPM sales.
• This also complements India’s broader focus on strengthening its critical mineral value chain through the National Critical Minerals Mission (NCMM), which aims to improve availability and processing capabilities for key minerals, including rare-earth elements utilised across advanced sectors.
• The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) has been reformed under the Mines and Minerals (Development and Regulation) Amendment Act, 2023 to strengthen India’s critical minerals ecosystem by opening private participation in all spheres of mineral exploration.