New Delhi, Nov 26 (NationPress) The Union Cabinet, led by Prime Minister Narendra Modi, has officially endorsed a groundbreaking initiative aimed at fostering the production of Sintered Rare Earth Permanent Magnets within the nation, involving an investment of Rs 7,280 crore.

This pioneering step is set to establish an integrated manufacturing capacity of 6,000 metric tons per annum for rare earth permanent magnets (REPM) in India, significantly enhancing self-sufficiency and positioning the country as a prominent player in the global market, as stated in a Cabinet communique.

REPMs are among the most potent types of permanent magnets and are essential for various applications, including electric vehicles, renewable energy, electronics, aerospace, and defence. The initiative will facilitate the creation of integrated permanent magnet manufacturing facilities, encompassing the conversion of rare earth oxides into metals, metals into alloys, and alloys into finished REPMs.

With the rapidly increasing demand from sectors such as electric vehicles, renewable energy, and consumer electronics, India's consumption of REPMs is projected to double by 2030 compared to 2025. Currently, India largely relies on imports to meet this demand. This initiative will mark the establishment of the nation's first integrated REPM manufacturing facilities, creating jobs, boosting self-reliance, and reinforcing India's commitment to achieving Net Zero emissions by 2070, as noted in the statement.

The total financial commitment for the scheme stands at Rs 7,280 crore, which includes sales-linked incentives of Rs 6,450 crore for REPM sales over five years and a capital subsidy of Rs 750 crore for setting up the manufacturing facilities.

The scheme aims to distribute the total capacity to five beneficiaries through a globally competitive bidding process, with each beneficiary eligible for up to 1,200 metric tons per annum capacity, as detailed in the statement.

The overall duration of the scheme will span 7 years from the award date, including a 2-year gestation period for setting up the integrated REPM manufacturing facility and 5 years for incentive disbursement linked to REPM sales.

"This initiative by the Government of India is a significant move towards bolstering the domestic REPM manufacturing ecosystem and improving competitiveness in international markets. By nurturing indigenous production capabilities for REPMs, the scheme aims to secure the magnet supply chain for local industries and support the nation’s commitment to achieving Net Zero by 2070. This reflects the Government's steadfast dedication to creating a technologically self-reliant, globally competitive, and sustainable industrial base, in alignment with the vision of Viksit Bharat @2047," the communique concluded.