Rare Earth Permanent Magnets (REPM scheme)
Why in News?
This scheme was initially approved by the Union Cabinet with a major financial layout of ₹7,280 crore to break import reliance and build an end-to-end indigenous production ecosystem for high-strength rare earth magnets.
Core Objectives and Target Capacity
- First-of-its-Kind: Marks India’s maiden initiative to establish a fully integrated domestic REPM ecosystem.
- Target Capacity: Aims to build 6,000 Metric Tonnes Per Annum (MTPA) of sintered REPM manufacturing capability.
- End-to-End Chain: Focuses on processing everything locally across the full value chain, including converting rare earth oxides to metals, metals to alloys, and alloys to finished magnets.
Financial Framework and Outlay
- The Ministry of Heavy Industries (MHI) extended the bid submission timeline for the global tender under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM scheme).
- Sales-Linked Incentives: ₹6,450 crore is allocated as performance-based incentives on REPM sales over five years.
- Capital Subsidy: ₹750 crore is set aside direct financial aid to support setting up advanced manufacturing facilities.
Implementation and Selection Process
- Scheme Timeline: Scheduled over a 7-year duration, consisting of a 2-year gestation/setup phase followed by a 5-year incentive payout period.
- Beneficiaries: Up to five companies will be selected globally via an open, competitive Least Cost System (LCS) bidding process.
- Capacity Cap: Each selected beneficiary will be allocated a maximum production cap of 1,200 MTPA to ensure market diversification.
- Nodal Agencies: Supervised jointly by the Ministry of Heavy Industries, the Ministry of Mines, the Department of Atomic Energy, and NITI Aayog.
Strategic Importance and Resource Availability
- The "China Dependency" Factor: India currently imports over 80% to 90% of its REPM demand, overwhelmingly sourcing them from China. Meanwhile, India's domestic consumption of these magnets is expected to double by 2030.
- Vast Mineral Reserves: Despite high imports, India sits on a massive resource base of 13.15 million tonnes of monazite sand (yielding 7.23 million tonnes of rare-earth oxides) spanning coastal and inland deposits in states like Andhra Pradesh, Odisha, Tamil Nadu, and Kerala.
- Critical Sectors: These ultra-strong permanent magnets are absolute requirements for Electric Vehicle (EV) motors, wind turbines, electronics, aerospace engineering, and defence systems.
Download Pdf
