The plan to encourage the production of sintered rare earth permanent magnets in the nation with an investment of Rs 7,280 crore was authorized by the Union Cabinet, which is led by Prime Minister Narendra Modi. According to a Cabinet statement, this first-of-its-kind project is to build 6,000 metric tons of integrated rare earth permanent magnet (REPM) manufacturing capacity in India annually, boosting self-reliance and establishing India as a major participant in the global market.
India’s usage of REPMs is predicted to treble by 2030 from 2025 due to the country’s fast increasing demand from consumer electronics, electric vehicles, renewable energy, and industrial applications. Currently, imports are the main source of these magnets for India. According to the release, India will build its first integrated REPM manufacturing facilities through this program, creating jobs, boosting self-sufficiency, and advancing the country’s goal of reaching Net Zero by 2070.
The scheme’s overall cost is Rs 7,280 crore, which includes capital subsidies of Rs 750 crore for the establishment of a total of 6,000 million tons of REPM manufacturing facilities annually and sales-linked incentives of Rs 6,450 crore on REPM sales for five years. The plan calls for a worldwide competitive bidding process to distribute the entire capacity to five beneficiaries.
