New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets in the country with an investment of Rs 7,280 crore.
This first-of-its-kind initiative aims to establish 6,000 metric tons per annum of integrated rare earth permanent magnet (REPM) manufacturing capacity in India, thereby enhancing self-reliance and positioning India as a key player in the global market, according to a Cabinet communique.
REPMs are one of the strongest types of permanent magnets and are vital for electric vehicles, renewable energy, electronics, aerospace, and defence applications. The scheme will support the creation of integrated permanent magnet manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.
Driven by the rapidly growing demand from electric vehicles, renewable energy, industrial applications, and consumer electronics, India’s consumption of REPMs is expected to double by 2030 from 2025. At present, India’s demand for these magnets is met primarily through imports. With this initiative, India will establish its first-ever integrated REPM manufacturing facilities, generating employment, strengthening self-reliance and advancing the nation’s commitment to achieve Net Zero by 2070, the statement said.
The total financial outlay of the scheme is Rs 7,280 crore, comprising sales-linked incentives of Rs 6,450 crore on REPM sales for five years and capital subsidy of Rs 750 crore for setting up an aggregate of 6,000 million tonnes per annum REPM manufacturing facilities.
The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process. Each beneficiary will be allotted up to 1,200 million tonnes per annum capacity, the statement added.
The total duration of the scheme will be 7 years from the date of award, including a 2-year gestation period for setting up an integrated REPM manufacturing facility, and 5 years for incentive disbursement on the sale of REPM.
“This initiative by the Government of India is a landmark step towards strengthening the domestic REPM manufacturing ecosystem and enhancing competitiveness in the global markets. By fostering indigenous capabilities in REPM production, the scheme will not only secure the magnet supply chain for domestic industries but also support the nation’s Net Zero 2070 commitment. It embodies the Government’s unwavering commitment to build a technologically self-reliant, globally competitive, and sustainable industrial base, in line with the vision of Viksit Bharat @2047,” the communique added.
(IANS)
