The government approved a ₹7,280-crore scheme to accelerate the manufacturing of rare earth permanent magnets (REPM) in India. This major step aims to reduce the country’s long-standing dependence on Chinese imports – especially in critical sectors like electric vehicles, renewable energy, consumer electronics, and aerospace.
Reducing Import Dependence
India currently relies heavily on China for rare earth magnet, which are vital for motors, turbines, and advanced technologies. By launching this scheme, the government is moving decisively toward strengthening domestic supply chains and improving national resilience.
Manufacturing Push
Under the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’, the government plans to create an annual manufacturing capacity of 6,000 metric tons.
This capacity will be awarded through a global competitive bidding process, selecting five beneficiaries, with each allowed to produce up to 1,200 tonnes. The approach ensures fair competition, encourages world-class manufacturing, and promotes high-quality production standards within the country.
Significant Financial Support to Encourage Investment
To attract strong industry participation, the scheme offers:
*₹6,450 crore in sales-linked incentives
*₹750 crore as capital subsidy
Together, these incentives are expected to reduce project costs, support technology adoption. It also ensure the long-term viability of the manufacturing ecosystem.
Seven-Year Timeline for Building a Global-Scale Industry
The programme has a seven-year timeline. It gives companies time to set up facilities, streamline operations, and ramp up production. During this period, the scheme intends to:
*Create new employment opportunities
*Promote advanced manufacturing
*Strengthen India’s self-reliance in critical technologies
Driving India Toward Technological Self-Reliance
Overall, the initiative marks a strategic leap toward building a robust, competitive, and self-sufficient rare earth magnet industry in India. As reported by devdiscourse.com, by encouraging domestic production and reducing external dependencies, the government is paving the way for stronger industrial growth and long-term economic stability.
