The Union Cabinet has approved a scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with a financial outlay of Rs. 7,280 Crore, approved on November 26th, 2025. The goal is to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity. Five beneficiaries are envisioned through global competitive bidding using a transparent Least Cost System (LCS) with a two-envelope process (technical and financial bids). A Sales-Linked Incentive of Rs. 6,450 crore and a Capital Subsidy of Rs. 750 crore are allocated for the scheme period. The scheme aims to reduce import dependence for critical sectors like electric mobility, renewable energy, electronics, and defense, while facilitating employment and strengthening domestic value chains. This information was provided by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in the Lok Sabha.
Key Entities Referenced
Promotion of Manufacturing of Sintered Rare Earth Permanent Magnets: Scheme to promote domestic manufacturing of Sintered Rare Earth Permanent Magnets (REPM).
Ministry of Heavy Industries: The ministry responsible for the scheme.
Ministry of Heavy Industries
PROMOTION OF MANUFACTURING OF
SINTERED RARE EARTH PERMANENT
MAGNETS
प्रव तथ: 16 DEC 2025 3:49PM by PIB Delhi
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.
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.
The Sales-Linked Incentive of Rs. 6,450 crore& Capital Subsidy of Rs. 750 crore is allocated for the
scheme period.
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.
This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa
Varma in a written reply in the Lok Sabha today.
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