Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)

Core Update

The Government approved a ₹7,280 crore scheme to establish an integrated domestic manufacturing ecosystem for Sintered Rare Earth Permanent Magnets (REPM).

What is the REPM Scheme

Rare Earth Permanent Magnets manufacturing scheme is a central scheme to build 6,000 MTPA end-to-end REPM manufacturing capacity in India, covering the full value chain from rare-earth oxides to finished magnets.

Key Features

• Total capacity: 6,000 MTPA
• Up to 5 beneficiaries, each up to 1,200 MTPA
• ₹6,450 crore as sales-linked incentives (5 years)
• ₹750 crore capital subsidy
• Implementation period: 7 years
  • 2-year gestation
  • 5-year incentive disbursement

Strategic Rationale

• REPMs are critical for:
  • Electric vehicles
  • Wind turbines
  • Electronics
  • Aerospace and defence
• Reduces high import dependence (59–81% value-wise)

Policy Linkages

• National Critical Minerals Mission (NCMM)
• MMDR Act reforms (2023)
• Atmanirbhar Bharat
• Net Zero 2070

UPSC Relevance

• GS-III: Critical minerals, industrial policy, clean energy

Prelims Trap Alert

⚠️ REPMs are manufactured products, not minerals. Scheme covers entire value chain, not mining alone.

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