India Approves Rs 7,280 Crore REPM Manufacturing Scheme

India's Union Cabinet, chaired by Prime Minister Narendra Modi, approved a Rs 7,280 crore incentive scheme on Wednesday to boost domestic manufacturing of sintered rare earth permanent magnets, aiming to establish a production capacity of 6,000 metric tonnes per annum and reduce the country's heavy reliance on imports for these critical components.

The initiative, announced after a cabinet meeting in New Delhi, targets the creation of an integrated manufacturing ecosystem for rare earth permanent magnets, or REPMs, which are among the strongest types of permanent magnets. These magnets are essential for key industries, including electric vehicles, renewable energy systems, aerospace, electronics, medical devices, and defense applications. Information and Broadcasting Minister Ashwini Vaishnaw told reporters that the scheme would promote REPM manufacturing to build a capacity of 6,000 metric tonnes per annum. He emphasized its role in strengthening supply chains for advanced sectors, noting that rare earths form a tightly controlled global mineral value chain.

Currently, India meets its REPM demand almost entirely through imports, with 53,748 tonnes imported in the fiscal year...