Scheme to Promote Manufacturing of Sintered REPMs

The Union Cabinet has approved a scheme to promote manufacturing of Sintered Rare Earth Permanent Magnets (REPMs) in India.
The scheme aims to secure India’s long-term supply of rare earth magnets and reduce dependence on foreign imports.
- Sintering is a process in which magnet materials are heated at high temperatures without melting.
Sintering strengthens the magnet’s structure and enhances its magnetic performance.
Sintering also makes the magnets more resistant to corrosion.

Key Features of the Scheme

The scheme has a financial outlay of ₹7,280 crore.
It includes ₹6,450 crore as sales-linked incentives for five years.
It includes ₹750 crore as capital subsidy for setting up manufacturing facilities.
The objective is to establish 6,000 Metric Tons per Annum (MTPA) of integrated REPMs manufacturing capacity in India.
The total capacity of 6,000 MTPA will be allocated to five beneficiaries through global competitive bidding.
Each selected beneficiary can receive up to 1,200 MTPA manufacturing capacity.
The scheme promotes end-to-end manufacturing integration.
- End-to-end integration covers the processing chain from rare earth oxides → metals → alloys → finished REPMs.
The scheme will operate for 7 years in total.
- The first 2 years will be used for facility setup as the gestation period.
- The next 5 years will involve incentive disbursement based on sales.

Rare Earth Permanent Magnets are made from alloys of rare earth elements.
- Rare Earth Elements consist of 17 elements, including the 15 lanthanides, along with scandium and yttrium.
REPMs have exceptional magnetic strength compared to conventional magnets.
They possess high energy density, making them efficient for advanced technological uses.
They deliver superior performance in high-precision and high-power applications.
REPMs are used in electric vehicles (EVs) due to their strong and compact magnetic properties.
They are used in renewable energy technologies, especially wind turbines and solar tracking systems.
They are crucial for electronics, including smartphones, computers, and audio systems.
They are used in the aerospace sector for navigation and control systems.
They are vital for the defence sector, including missiles, radars, and advanced communication devices.