REPM Scheme: India's Critical Mineral Strategy Explained for UPSC
Q. Regarding the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM)' 2025, consider the following statements:
1. The scheme aims to achieve a total domestic manufacturing capacity of 6,000 Metric Tonnes Per Annum (MTPA).
2. It provides both capital subsidies for integrated facilities and sales-linked incentives over a seven-year period.
3. In India, monazite—the primary source of rare-earth minerals—is found only in the coastal regions of Kerala and Tamil Nadu.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Context
The Government of India has approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM)' with a financial outlay of ₹7,280 crore. The initiative aims to build a domestic integrated ecosystem for rare-earth magnets, reducing import dependence from major suppliers like China.
What is a Rare Earth Permanent Magnet (REPM)?
REPMs are among the strongest types of permanent magnets and are used extensively in technologies requiring compact and high-performance magnetic components. Their high magnetic strength and stability allow them to deliver strong performance in advanced engineering applications.
Key Applications:
- Electric vehicle (EV) motors
- Wind turbine generators
- Aerospace and defence systems
- Consumer and industrial electronics
- Precision sensors and actuators
Core Elements of the Scheme
The scheme framework supports end-to-end manufacturing in India over a seven-year period (two-year gestation + five-year incentive disbursement).
- Total Outlay: ₹7,280 crore
- Target Capacity: 6,000 Metric Tonnes Per Annum (MTPA)
- Sales-linked Incentives: ₹6,450 crore over five years
- Capital Subsidy: ₹750 crore for establishing integrated facilities
- Beneficiaries: Up to five companies selected through global competitive bidding (max 1,200 MTPA each)
India's Rare Earth Resource Base
India possesses a substantial base of rare-earth minerals, primarily through monazite deposits in coastal and inland regions.
- Monazite Deposits: 13.15 million tonnes
- Estimated Rare Earth Oxides (REO): 7.23 million tonnes
- Key States: Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra
- Augmented Resources: 482.6 million tonnes of rare-earth ore identified by the Geological Survey of India (GSI)
Related Ecosystem and Policy Framework
The REPM scheme is part of a broader strategy to secure India's critical mineral supply chain.
- National Critical Minerals Mission (NCMM) — Approved January 2025; aims to secure long-term sustainable supply of critical minerals from exploration to recycling.
- Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) — Reformed in 2023 to allow private participation in mineral exploration and empower the government to auction mineral concessions.
- Khanij Bidesh India Limited (KABIL) — A joint venture of NALCO, HCL, and MECL; mandated to explore and acquire strategic mineral assets like lithium and cobalt overseas (e.g., Argentina).
Significance
India currently depends on imports for 84.8% to 90.4% of its permanent magnet quantity, with a major share coming from China. Establishing domestic capacity is strategic for:
- Self-reliance: Atmanirbhar Bharat in critical sectors like defence and aerospace.
- Net Zero 2070: Supporting the clean-energy transition through EVs and wind power.
- Global Positioning: Enhancing India's role in global advanced-materials value chains.
- Supply Resilience: Reducing vulnerability to global supply chain disruptions.
🎯 Analysis & Insights
Prelims mastery
Correct Answer: (a) 1 and 2 only.
Reasoning: While monazite is found in coastal regions, it is also present in inland regions across several states including Andhra Pradesh, Odisha, West Bengal, Jharkhand, and others, as per the resource base data (Statement 3 is false).
Mains perspective
"The REPM Scheme, integrated with the National Critical Minerals Mission (NCMM), is essential for India’s transition towards a Net Zero economy and strategic self-reliance in the aerospace and defence sectors." Discuss. (150 words)