New Delhi — The Union Cabinet on Wednesday approved a ₹7,280-crore scheme aimed at accelerating domestic manufacturing of sintered rare earth permanent magnets, a critical component used across multiple high-technology industries. The decision was taken during a meeting chaired by Prime Minister Narendra Modi.
Information and Broadcasting Minister Ashwini Vaishnaw said the scheme is designed to create a production capacity of 6,000 metric tonnes per annum (MTPA). He noted that rare earth magnets play an essential role in sectors such as electric vehicles, aerospace, electronics, medical devices and defence, making domestic capacity-building a strategic priority.
Under the initiative, the government plans to distribute the total approved capacity among five beneficiaries selected through a global competitive bidding process. Each beneficiary can receive an allocation of up to 1,200 MTPA.
The scheme will run for a total of seven years from the date of award. This includes a two-year gestation period to establish a fully integrated Rare Earth Permanent Magnet (REPM) manufacturing facility, followed by five years during which incentives will be provided based on actual REPM sales.
