Context: The Ministry of Heavy Industries has released the Request for Proposal (RFP) for selection of beneficiaries to set up integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities of 6,000 Metric Tonnes Per Annum (MTPA) capacity under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet.
About Scheme to Promote Manufacturing of Sintered REPM:
- On 26th November 2025, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet with a financial outlay of Rs.7,280 crore.
- The Scheme is first-of-its-kind initiative aims to establish a total capacity of 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet manufacturing facilities in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market.
- Under the Scheme, each beneficiary will be allocated a capacity ranging between 600 MTPA and 1,200 MTPA (in multiples of 100 MTPA).
- The Scheme provides a capital subsidy of ₹750 crore and, sales-linked incentive of ₹6,450 crore, with limited assured supply of NdPr oxide from IREL (India) Ltd. for the three lowest bidders.
What is Rare Earth Permanent Magnet (REPM)?
- REPMs are amongst the strongest types of permanent magnets and are used extensively in technologies requiring compact and high-performance magnetic components. Their high magnetic strength and stability make them integral to:
- Electric vehicle motors
- Wind turbine generators
- Consumer and industrial electronics
- Aerospace and defence systems
- Precision sensors and actuators
The scheme establishes a comprehensive framework for end-to-end REPM manufacturing in India, supporting both initial capacity creation and long-term competitiveness.
- It aims to build a fully integrated production ecosystem for high-performance magnetic materials, creating 6,000 MTPA of domestic manufacturing capacity, from oxide feedstock to final product.
- The total capacity will be distributed among up to five beneficiaries through a global competitive bidding process, with each beneficiary eligible for up to 1,200 MTPA, ensuring diversification along with adequate scale.
- The scheme includes a strong incentive structure, with ₹6,450 crore earmarked as sales-linked incentives for REPM production over five years.
- A ₹750 crore capital subsidy will support the establishment of advanced, integrated REPM manufacturing facilities.
- The scheme will be implemented over seven years, comprising a two-year gestation period for setting up the integrated REPM facilities followed by five years of incentive disbursement linked to REPM sales. This structured timeline is intended to support timely capacity creation and provide stability during the initial production and market-development phase.
Conclusion
The Scheme to promote manufacturing of Sintered Rare Earth Permanent Magnets (REPM) is designed to enhance competitiveness, attract technology-driven investment and support long-term scalability. It also contributes to India’s energy-transition goals, given the role of these materials in high-efficiency systems. By establishing domestic capability and strengthening downstream linkages, this Government’s initiative will help generate employment, deepen industrial capacity and support the vision of Atmanirbhar Bharat and Viksit Bharat @2047.