**Executive Summary**
The Government of India has approved a scheme, with a total outlay of Rs. 7,280 crore, to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM). This scheme aims to establish an integrated manufacturing capacity of 6,000 metric tonnes per annum (MTPA) and reduce import dependence in critical sectors. The scheme was approved by the Union Cabinet on November 26, 2025.
**Key Points / Main Content**
* **Scheme Approval and Objectives:**
* The Union Cabinet has approved a scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM).
* The scheme aims to establish 6,000 MTPA of integrated REPM manufacturing capacity.
* The scheme intends to reduce India's dependence on REPM imports in sectors like electric mobility, renewable energy, electronics, and defence.
* **Financial Allocation:**
* The scheme has a total financial outlay of Rs. 7,280 crore.
* Sales-Linked Incentive of Rs. 6,450 crore and Capital Subsidy of Rs. 750 crore are allocated for the scheme period.
* **Beneficiary Selection:**
* Five beneficiaries will be selected through global competitive bidding.
* A transparent Least Cost System (LCS), using a two-envelope process (technical and financial bids), will be used.
**Impact Analysis**
**Stakeholder: Critical Sectors (Electric Mobility, Renewable Energy, Electronics, Defence)**
* **Impact**: Reduced dependence on imported rare-earth permanent magnets, contributing to the strengthening of domestic value chains.
* **Action Required**: Adapt manufacturing processes to utilize domestically produced REPMs and leverage incentives.
**Stakeholder: Potential Beneficiaries**
* **Impact**: Opportunity to establish REPM manufacturing facilities in India and access financial incentives.
* **Action Required**: Prepare and submit competitive bids through the global competitive bidding process.
**Stakeholder: Domestic Economy**
* **Impact**: Employment generation and strengthening of domestic value chains.
* **Action Required**: N/A
Key Entities Referenced
Sintered Rare Earth Permanent Magnets (REPM): Scheme to promote manufacturing of Sintered Rare Earth Permanent Magnets with a total outlay of Rs. 7,280 crore.
Ministry of Heavy Industries: The ministry to which the question was addressed.
Union Cabinet: The entity that approved the REPM manufacturing scheme.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 2603
ANSWERED ON 16.12.2025
PROMOTION OF MANUFACTURING OF SINTERED RARE EARTH PERMANENT
MAGNETS
2603. SHRI JAGDAMBIKA PAL:
SHRI TATKARE SUNIL DATTATREY:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) whether the Government has approved a scheme to promote manufacturing of Sintered Rare
Earth Permanent Magnets (REPM) with a total outlay of Rs. 7,280 crore;
(b) if so, the details of the proposed annual integrated manufacturing capacity of REPMs to be
established in the country under the scheme;
(c) the number of beneficiaries proposed to be selected through global competitive bidding and the
criteria for such selection;
(d) the details of the sales-linked incentives and capital subsidy to be provided during the scheme
period;
(e) whether the scheme is expected to reduce India’s dependence on imported rare-earth permanent
magnets used in sectors such as electric mobility, renewable energy, electronics and defence; and
(f) if so, the likely impact on domestic value chains, innovation and employment generation?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) & (b): The Union Cabinet has approved the scheme to promote manufacturing of Sintered
Rare Earth Permanent Magnet (REPM) with financial outlay of Rs. 7,280 Crore on 26th November,
2025, to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing
capacity in the country.
(c): Five beneficiaries are envisaged under the scheme through global competitive bidding. A
transparent Least Cost System (LCS), comprising a two‑envelope process i.e. technical bid and
financial bid is envisaged.
(d): The Sales-Linked Incentive of Rs. 6,450 crore & Capital Subsidy of Rs. 750 crore is allocated
for the scheme period.
(e) & (f): The scheme is aimed at promoting domestic manufacturing of REPM in the country,
thereby contributing to reduce dependence on imports for critical sectors such as electric mobility,
renewable energy, electronics and defence apart from facilitating employment generation and
strengthening of domestic value chains.
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