Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
Context:
The Union Cabinet approved a new first-of-its-kind scheme to manufacture Rare Earth Permanent Magnets (REPM) in India
This is a major initiative by the Government of India to enhance self-reliance in this critical sector.
Scheme Objectives:
The primary aim of the scheme is to establish an integrated Rare Earth Permanent Magnet (REPM) manufacturing ecosystem in India
It also aims to enhance self-reliance and position India as a key player in the global REPM market.
The scheme aims to achieve 6,000 Metric Tons per Annum (MTPA) of integrated REPM manufacturing capacity
It is in line with the Aatmanirbhar Bharat Abhiyan and supports the nation's Net Zero 2070 commitment
The total Financial Outlay is ₹7,280 crore
It is divided into two key components:
Sales-Linked Incentive (PLI-like)
Capital Subsidy
Implementation Mechanism:
The scheme supports the creation of integrated REPM manufacturing facilities.
This involves the entire value chain (conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs)
The total duration of the scheme is 7 years (includes a 2-year gestation period) from the date of award.
Importance of Rare Earth Permanent Magnets (REPMs)
REPMs are among the strongest types of permanent magnets and are crucial components for high-efficiency motors and devices
They are vital for sectors such as:
Electric Vehicles (EVs)
Renewable Energy
Electronics
Aerospace
Defence