The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved a ₹7,280 crore scheme for rare-earth permanent magnets (REPM) to boost India’s domestic rare-earth manufacturing capabilities. The scheme aims to establish integrated manufacturing facilities with a capacity of 6,000 Metric Tons per Annum (MTPA) of rare-earth permanent Magnets.
REPMs are expected to be the most powerful permanent magnets available, which is crucial across sectors such as electric vehicles, renewable energy, electronics, aerospace, and defence. Currently, India is dependent on imports to meet its REPM needs. With First’s integrated REPM manufacturing facilities, India promotes employment opportunities, supports self-sufficiency, and advances the country’s Net Zero target by 2070.
The scheme includes sales-linked incentives of ₹6,450 crore for REPM sales over five years, along with a ₹750 crore capital subsidy to establish 6,000 MTPA of REPM production facilities. Information and Broadcasting Minister Ashwini Vaishnaw announced the decision, stressing the scheme’s strategic importance. “This is a very important, strategic decision,” he said.
Earlier, the cabinet also took the initiative to reduce import dependence and supply chain vulnerabilities for critical minerals by approving new royalty rates for four minerals, including graphite, caesium, rubidium, and zirconium.
