Cabinet Approves Rs. 7,280 Crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)

The Union Cabinet has approved a Rs. 7,280 crore scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM) in India. This initiative is crucial for reducing import dependency and enhancing technological self-reliance, relevant for UPSC GS Paper 3 on Economic Development and Science & Technology. Last Updated: 2025-11-28

Key Facts About Sintered Rare Earth Permanent Magnets (REPM) Scheme

• Scheme Value: Rs. 7,280 crore over seven years.
• Capacity Goal: Establish 6,000 Metric Tons per Annum (MTPA) of REPM.
• Incentives: Rs. 6,450 crore in sales-linked incentives and Rs. 750 crore in capital subsidy.
• Beneficiary Allocation: Five beneficiaries selected via global competitive bidding.
• Capacity Distribution: Up to 1,200 MTPA per beneficiary.
• Duration: 7 years with a 2-year setup and 5 years for incentives.
• Rising Demand: India's demand for REPMs is expected to double by 2030.
• Import Dependency: Currently, India imports over 53,000 metric tonnes of REPMs.

India's Strategic Manufacturing Push

The approval of the REPM scheme is a strategic move to boost India's manufacturing capabilities, aligning with the country's broader economic goals to enhance self-reliance and reduce import dependency. With the global demand for high-performance magnets rising, this initiative places India in a competitive position internationally. The scheme is expected to significantly contribute to India's GDP growth and technological advancement, particularly in the electric vehicle (EV) sector.

Related Government Schemes/Policies

• Make in India: Encourages domestic manufacturing and investment.
• National Electric Mobility Mission Plan (NEMMP): Aims to promote electric vehicles in India.
• Atmanirbhar Bharat: Focuses on self-reliance and reducing import dependency.

UPSC Relevance

• GS Paper 1: Economic Geography - Industrial Location Factors
• GS Paper 2: Government Policies and Interventions for Development
• GS Paper 3: Economic Development - Infrastructure, Energy, Ports, Roads, Airports, Railways, etc.
• Prelims Angle: Questions on REPM definition, scheme value, and capacity goals.
• Mains Angle: Analytical themes on India's manufacturing strategy and import substitution.

FAQ Section

• What is the Sintered Rare Earth Permanent Magnets (REPM) Scheme? The scheme is a Rs. 7,280 crore initiative by the Indian government to promote domestic manufacturing of REPMs, aiming to establish a capacity of 6,000 MTPA over seven years.
• Why is the REPM Scheme important? It is crucial for reducing India's import dependency on REPMs, which are vital for technology and EV components, and enhancing the country's technological self-reliance.
• What are the key features of the REPM Scheme? The scheme includes Rs. 6,450 crore in sales-linked incentives, Rs. 750 crore in capital subsidy, and aims to select five beneficiaries through global competitive bidding.