The government announced an ambitious ₹7,280 crore initiative to ramp up domestic production of sintered Rare Earth Permanent Magnets (REPM). The scheme is designed to reduce reliance on China and secure critical supply chains for the electric vehicle, aerospace, and green energy sectors.
Comprehensive Domestic Manufacturing Chain
The initiative aims to create an end-to-end domestic manufacturing ecosystem, converting rare earth oxide (REO) into sintered NdFeB magnets. The scheme will incentivize indigenously produced magnets through sales-linked benefits and capital subsidies, encouraging the establishment of 6,000 MTPA REO to sintered NdFeB REPM facilities across the country.
Transparent Allocation and Material Supply
The scheme will follow a transparent bidding process to allocate manufacturing capacities to selected applicants. IREL (India) Ltd will supply rare earth material to the three beneficiaries offering the lowest bids, ensuring fair access and efficient utilization of resources.
Seven-Year Plan to Foster Indigenous Capability
Spanning seven years, the initiative addresses India’s current import-heavy REPM landscape. As reported by devdiscourse.com, by nurturing domestic manufacturing capabilities, the scheme aims to strengthen India’s strategic autonomy, create jobs, and support critical industries reliant on high-performance magnets.
