In a decisive step to strengthen India’s capabilities in critical and strategic materials, union minister for heavy industries and steel, Shri H. D. Kumaraswamy, chaired a high-level stakeholder consultation on the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs). The consultation brought together key policymakers, public sector leaders, and domestic and international industry players, highlighting the strategic importance of REPMs for India’s industrial and clean-energy transition.
High-Level Stakeholder Consultation
The consultation convened officials including the Secretary, Ministry of Heavy Industries; Secretary, Department of Atomic Energy; CMD, IREL (India) Ltd.; Director (Technical), NMDC; and Director, NFTDC, along with representatives from leading global and Indian manufacturing firms. The presence of these stakeholders underscores the geopolitical and technological significance of REPMs, which are critical for electric vehicles (EVs), renewable energy systems, electronics, defence, and advanced manufacturing.
Scheme as a Strategic Step Toward Self-Reliance
Kumaraswamy described the Scheme as a pivotal initiative to build a self-reliant, resilient, and globally competitive REPM ecosystem, aligned with the national vision of Viksit Bharat @2047. Emphasising supply-chain security and strategic autonomy, he urged eligible domestic and international companies to actively participate in the upcoming bidding process. The Minister also confirmed that the Ministry is finalising the Request for Proposal (RfP), signalling the imminent operationalisation of the Scheme.
Ambitious Incentives to Drive Manufacturing
According to the Joint Secretary of the Ministry of Heavy Industries, the Scheme was officially notified on 15 December 2025. It is among the most ambitious incentive frameworks in the strategic materials sector.
Key highlights include:
*Total financial outlay: ₹7,280 crore, comprising ₹6,450 crore in sales-linked incentives (SLI) and ₹750 crore in capital subsidy.
*Target capacity: 6,000 metric tonnes per annum (MTPA) of domestic REPM production.
*Scheme duration: Seven years, including a two-year gestation period for setting up integrated facilities, followed by five years of performance-linked incentive disbursement.
The structure ensures long-term viability and performance-based support for participating manufacturers.
Industry Engagement and Global Partnerships
During the consultation, industry representatives showcased their technical capabilities and investment readiness. They also expressed interest in participation, highlighting opportunities for technology transfer, integrated value chains, and international partnerships. The dialogue reinforced the Government of India’s commitment to industry–policy collaboration as a cornerstone of technological self-sufficiency.
Strategic Implications: Reducing Import Dependence
By targeting a critical choke-point in global supply chains, the Scheme positions India to emerge as a reliable global supplier of high-performance rare earth magnets. It is expected to reduce import dependence, strengthen strategic autonomy, and support India’s transition to a high-tech, clean-energy-driven industrial base.
Early Movers to Gain Advantage
The Ministry of Heavy Industries is encouraging EV manufacturers and clean-energy firms to engage early with the Scheme. Advanced materials companies, rare-earth processors, and global technology leaders are also being invited to participate. As reported by devdiscourse.com, early participation offers financial incentives and policy certainty. It also provides first-mover advantage in India’s future-ready REPM manufacturing ecosystem.
