The Union Cabinet has approved a Rs 7,280-crore ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ (REPM), marking India’s first major push to build a fully integrated REPM production ecosystem.

Designed to create 6,000 MTPA of capacity, the scheme supports the entire value chain—from converting rare-earth oxides into metals and alloys to producing finished magnets essential for electric vehicles, renewable energy, electronics, aerospace, and defence. Highlighting the strategic importance of the initiative, the government noted that REPMs are “one of the strongest types of permanent magnets,” underscoring their critical role in next-generation technologies.

With India’s REPM demand projected to double by 2030, the initiative aims to curb import dependence, generate high-skilled employment, and strengthen the nation’s path toward Net Zero by 2070. The scheme allocates Rs 6,450 crore as sales-linked incentives over five years and Rs 750 crore as capital subsidy. Capacity will be awarded through global competitive bidding to up to five beneficiaries, with a total scheme duration of seven years, wherein each beneficiary may receive up to 1,200 MTPA of capacity.