Cabinet approves ₹7,280 crore scheme to make sintered Rare Earth Permanent Magnets
The Union Cabinet on 26 November 2025 approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with an outlay of ₹7,280 crore to set up 6,000 tonnes per annum (MTPA) of integrated REPM manufacturing in India.
Summary
REPMs are among the strongest permanent magnets and are vital for electric vehicles, renewable energy, electronics, aerospace and defence. India's demand is met mainly through imports and is expected to double by 2030 from 2025. The outlay includes ₹6,450 crore of sales-linked incentives over five years and ₹750 crore of capital subsidy. Capacity will be allotted to five beneficiaries through global competitive bidding, each up to 1,200 MTPA. The scheme runs 7 years from award, including a 2-year gestation period. Facilities will be integrated â rare earth oxides to metals, alloys and finished magnets.
Key facts
- Outlay
- ₹7,280 crore
- Capacity
- 6,000 MTPA integrated sintered REPM
- Sales-linked incentive
- ₹6,450 crore (5 years)
- Capital subsidy
- ₹750 crore
- Beneficiaries
- 5, via global competitive bidding (up to 1,200 MTPA each)
- Duration
- 7 years incl. 2-year gestation
- Uses
- EVs, renewables, electronics, aerospace, defence
Practice MCQs 3 questions
What is the financial outlay of the scheme approved by the Cabinet in November 2025 to promote manufacturing of sintered Rare Earth Permanent Magnets?
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Correct answer: C â ₹7,280 crore
The scheme has an outlay of ₹7,280 crore: ₹6,450 crore sales-linked incentives and ₹750 crore capital subsidy.
The REPM scheme approved in November 2025 aims to create how much integrated manufacturing capacity per year?
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Correct answer: C â 6,000 tonnes
It aims to establish 6,000 MTPA of integrated REPM manufacturing, split among five beneficiaries of up to 1,200 MTPA each.
Consider the following statements about the REPM scheme approved in November 2025: 1. Capacity will be allotted to five beneficiaries through a global competitive bidding process. 2. The total scheme duration is 5 years, with no gestation period. Which of the statements given above is/are correct?
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Correct answer: A â 1 only
Statement 1 is correct. Statement 2 is wrong: the scheme runs 7 years from award, including a 2-year gestation period and 5 years of incentives.