Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
1. What is the News?
The Government of India has approved a new scheme to promote domestic manufacturing of Sintered Rare Earth Permanent Magnets (REPM) to reduce import dependence and strengthen India’s clean-tech & electronics supply chain.
2. Nodal Ministry
Ministry of Heavy Industries (MHI)
3. Objective of the Scheme
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To develop domestic capability in manufacturing high-performance rare earth magnets.
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To reduce India’s heavy dependence on imports (mainly from China).
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To support sectors requiring NdFeB-based magnets, such as:
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Electric Vehicles
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Wind turbines
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Drones
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Robotics
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Consumer electronics
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Defence applications
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4. Why Sintered REPM?
Sintered Neodymium–Iron–Boron (NdFeB) magnets are among the strongest permanent magnets in the world.
Properties:
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Very high magnetic strength
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High resistance to demagnetisation
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Essential for compact, energy-efficient motors
5. Key Features of the Scheme
a) Financial Support
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Capital subsidy for setting up manufacturing facilities.
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Additional incentives linked to output and quality.
b) Technology Support
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Assistance for acquiring high-end technology.
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Focus on sintering, powder metallurgy, precision machining.
c) Encourages End-to-End Manufacturing
From rare earth oxide → metal → alloy → magnet.
d) Priority Sectors
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EVs
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Renewable energy systems
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Defence & aerospace
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High-end electronics
e) Focus on Critical Minerals Strategy
The scheme complements India’s broader goal of securing supply chains for:
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Neodymium (Nd)
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Praseodymium (Pr)
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Dysprosium (Dy)
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Terbium (Tb)
6. Need for the Scheme
a) Import Dependence
India imports 90%+ of rare earth magnets, mainly from China.
b) National Security
Critical for defence equipment: missiles, radars, fighter aircraft.
c) EV Ecosystem Growth
EV traction motors require NdFeB magnets.
d) Renewable Energy Transition
Wind turbine generators also use sintered rare earth magnets.
7. Expected Outcomes
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Self-reliant REPM ecosystem in India.
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Technological capability in advanced magnet production.
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Boost to Make in India, Aatmanirbhar Bharat, and critical minerals mission.
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Lower import bill and stronger strategic autonomy.
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Accelerated growth of EV and renewable sectors