Union Cabinet clears Rs 7,280-cr scheme for Rare Earth Magnet manufacturing

NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets in the country with an investment of Rs 7,280 crore.  This first-of-its-kind initiative aims to establish 6,000 metric tons per annum of integrated rare earth permanent magnet (REPM) manufacturing capacity in India, thereby enhancing self-reliance and positioning India as a key player in the global market, according to a Cabinet communique. 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 these magnets 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 statement said. The total financial outlay of the scheme is Rs 7,280 crore, comprising sales-linked incentives of Rs 6,450 crore on REPM sales for five years and capital subsidy of Rs 750 crore for setting up an aggregate of 6,000 million tonnes per annum REPM manufacturing facilities. The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process. (IANS)

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