The Union Cabinet chaired by Prime Minister Narendra Modi has approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)’ with a financial outlay of Rs 72.8 billion. The initiative aims to establish 6,000 MTPA of integrated REPM manufacturing capacity in India, marking the country’s first major step towards self-reliance in this critical technology segment.Rare Earth Permanent Magnets—among the strongest magnets available—are essential components in electric vehicles, renewable-energy systems, consumer electronics, aerospace applications and defence equipment. The scheme will support integrated manufacturing facilities covering the full value chain from rare-earth oxides to metals, alloys and finished magnets.Demand for REPMs in India, driven by EVs, renewable energy and industrial technologies, is projected to double between 2025 and 2030. Currently, most of this requirement is met through imports. The new scheme will help India establish its first fully integrated REPM production ecosystem, generating employment, strengthening domestic supply chains and supporting the national goal of achieving Net Zero by 2070.The Rs 72.8 billion outlay includes Rs 64.5 billion in sales-linked incentives for five years and Rs 7.5 billion as capital subsidy to support the creation of 6,000 MTPA of manufacturing capacity. The total capacity will be allocated to five beneficiaries through a global competitive bidding process, with each eligible entity receiving up to 1,200 MTPA.The scheme will run for seven years from the date of award, including a two-year gestation period for facility establishment and a five-year incentive disbursement window. By fostering indigenous REPM manufacturing, the initiative aims to secure India’s supply chain, boost competitiveness in global markets and advance the vision of Viksit Bharat @ 2047.