The Indian government is preparing to launch a Rs 7,350 crore initiative aimed at developing a fully indigenous manufacturing ecosystem for sintered rare earth permanent magnets (REPMs) over seven years.

Likely to be named the Scheme to Promote Sintered Rare Earth Permanent Magnet Manufacturing in India, it targets an annual production capacity of up to 6,000 tonne, covering critical industries like automobile, electronics, wind energy, and defence.The REPM production covers mining, beneficiation, processing, extraction, refining to rare earth oxide, metal and alloy conversion, and magnet manufacturing.

The scheme will support the entire value chain from rare earth oxide conversion to magnet manufacturing, focusing on the final three stages currently lacking domestically. Five integrated units will be established, each producing up to 1,200 tonne annually. Selected firms will receive sales-linked incentives and a 15 percent capital subsidy to offset high setup costs due to reliance on imported machinery. Domestic demand, currently at 4,010 tonne annually, is expected to double by 2030, highlighting the urgency for self-reliance in this strategic sector.