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Cabinet approves Rs.7,280 Crore for Sintered Rare Earth Permanent Magnets Scheme

Published By : Admin | November 26, 2025 | 16:25 IST
First-of-its-kind initiative by the Government of India to promote REPM ecosystem, enhancing self-reliance and positioning India as a key player in the global REPM market
The scheme will promote domestic manufacturing of 6,000 MTPA of sintered REPM, strengthen supply chains for the automotive, defence, and aerospace sectors, and support the Atmanirbhar Bharat Abhiyan and India's Net Zero 2070 commitment

The Union Cabinet chaired by Prime Minister Shri Narendra Modi today approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a financial outlay of Rs.7280 crore. This first-of-its-kind initiative aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market.

REPMs are one of the strongest types of permanent magnets and are vital for electric vehicles, renewable energy, electronics, aerospace, and defence applications. The Scheme will support the creation of integrated REPM manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.

Driven by the rapidly growing demand from electric vehicles, renewable energy, industrial applications, and consumer electronics, India's consumption of REPMs is expected to double by 2030 from 2025. At present, India's demand for REPMs is met primarily through imports. With this initiative, India will establish its first ever integrated REPM manufacturing facilities, generating employment, strengthening self-reliance and advancing the nation's commitment to achieve Net Zero by 2070.

The total financial outlay of the scheme is Rs.7280 crore, comprising a sales-linked incentives of Rs. 6450 crore on REPM sales for five (5) years and capital subsidy of Rs.750 crore for setting up an aggregate of 6,000 MTPA of REPM manufacturing facilities.

The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process. Each beneficiary will be allotted up to 1,200 MTPA of capacity.

The total duration of the scheme will be 7 years from the date of award, including a 2-year gestation period for setting up an integrated REPM manufacturing facility, and 5 years for incentive disbursement on the sale of REPM.

This initiative by the Government of India is a landmark step towards strengthening the domestic REPM manufacturing ecosystem and enhancing competitiveness in the global markets. By fostering indigenous capabilities in REPM production, the scheme will not only secure the REPM supply chain for domestic industries but also support the nation’s Net Zero 2070 commitment. It embodies the Governments unwavering commitment to build a technologically self-reliant, globally competitive, and sustainable industrial base, in line with the vision of Viksit Bharat @2047.

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Prime Minister Shri Narendra Modi laid the foundation stone, inaugurated various development works worth more than Rs.18,000 crore in Kolkata, West Bengal, today. Addressing the gathering the Prime Minister remarked, "Today, from the land of Kolkata, a new chapter of development is being written for West Bengal and Eastern India."

The Prime Minister highlighted that the foundation stones and dedications of projects worth more than ₹18,000 crore related to roads, railways, and port infrastructure have been carried out at this event. He emphasized that these projects will give new momentum to West Bengal and Eastern India, boost trade and industry, and make life easier for lakhs of people by providing them new opportunities. Referring to some of the key projects, the Prime Minister noted that the completion of the Kharagpur–Moregram Expressway will accelerate economic activities across many parts of West Bengal. He also mentioned the Dubrajpur Bypass and the major bridges being constructed over the Kangsabati and Shilabati rivers, which will further improve connectivity. "I congratulate the people of West Bengal and the entire Eastern India for these transformative projects," remarked Shri Modi.

The Prime Minister stated that a vigorous campaign is underway across the country to modernize the Indian Railways, and it is the firm resolve of the government that West Bengal does not lag behind in this mission. He pointed out that the Central Government is rapidly expanding the railway infrastructure in West Bengal. On this occasion, the Automatic Block Signalling System on the Kalaikunda–Kanimahuli section has been dedicated to the nation. "These initiatives will enhance the capacity of busy rail routes, make journeys safer, and also increase speed and convenience for passengers", asserted Shri Modi.

The Prime Minister announced the inauguration of six stations, Kamakhyaguri, Anara, Tamluk, Haldia, Barabhum, and Siuri,as Amrit Bharat Stations. He noted that the great culture of Bengal is now shining even more brightly at these stations, and several more stations are undergoing redevelopment. A new express train service between Purulia and Anand Vihar Terminal has also been flagged off. "This train service will benefit not only the people of West Bengal but also those in Jharkhand, Bihar, Uttar Pradesh, and Delhi" , affirmed Shri Modi.

The Prime Minister emphasized that ports and water transport play an equally important role as road and rail connectivity in driving economic progress. He observed that for decades, this immense potential of Eastern India was largely neglected, but today, waterways are opening new avenues for trade and industrial advancement. In this direction, foundation stones and dedications of key port infrastructure projects have been carried out. The Prime Minister highlighted that Kolkata and Haldia ports have long been major centres of trade in Eastern India, and the mechanization of the Haldia Dock Complex will accelerate cargo operations, enhance port capacity, and provide new facilities for trade. Additionally, the renovation of the Bascule Bridge in the Kolkata Dock System and the augmentation of cargo handling capacity at Kidderpore Dock are also being undertaken. "All these projects will further strengthen the logistics system of Eastern India", asserted Shri Modi.

In his concluding remarks, the Prime Minister underscored that the new projects related to roads, railways, and ports are paving the way for a modern future for West Bengal. He noted that the benefits of these projects will reach farmers, traders, entrepreneurs, students, and every section of society. New opportunities will emerge in sectors like tourism, and local industries and services will gain fresh momentum. The Prime Minister recalled Bengal's historic role in showing the way to India and expressed his conviction that strong connectivity and modern infrastructure will form the foundation of a developed Bengal. "It is our resolve that Bengal, which has always shown the way to India, should once again achieve that glory by becoming a 'Viksit Bengal' ", emphasized Shri Modi.