Government notifies scheme to promote manufacturing of REPM with funding of Rs 7,280 crore
The government has notified a Rs 7,280 crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM). The initiative is targeting to reduce dependence on China for critical inputs and ensure a steady supply for electric vehicles, electronics, aerospace, and green energy.
The scheme, approved earlier by the Union Cabinet, aims to develop a complete domestic value chain of converting rare earth oxide into sintered NdFeB, essential for India's industrial and strategic growth. Neodymium-Iron-Boron (NdFeB) is the alloy used to create the strongest type of permanent magnets.
Through this scheme, the government plans to incentivise setting up of 6,000 Million Tonnes Per Annum of integrated REO (rare earth oxides) to sintered NdFeB REPM's manufacturing facilities in the country. Indigenously produced sintered NdFeB REPMs from NdPr oxide will be eligible for sales-linked incentives and capital subsidy under the scheme.
The government will allocate up to 6,000 MTPA of integrated sintered NdFeB magnet manufacturing capacity to five applicants through a transparent bidding process -- Global Tender Enquiry (GTE) by issuing a Request for Proposal (RFP). The minimum allocation to a beneficiary will be 600 MTPA, going up to a maximum allocation of 1,200 MTPA, in multiples of 100 MTPA.
