Cabinet Clears Rs 72.8 Bn Scheme for Rare-Earth Magnet Manufacturing

28 Nov 2025 CW Team

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.

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.

Real Estate

05 Dec 2025

RBI Rate Cut Boosts Confidence Across Housing Market

Industry Context and Market DynamicsThe real estate industry has welcomed the RBI’s rate cut as a timely boost to affordability and demand. With home prices having risen steadily across major markets, even a marginal reduction in interest rates meaningfully strengthens purchasing power, especially for first-time and mid-income buyers.Ashish Jerath, President – Sales & Marketing, Smartworld Developers, observes:“The RBI’s 25-basis-point cut, bringing the repo rate down to 5.25%, is a timely boost for the real estate sector. Lower interest rates reduce borrowing costs, enabling homeb..

Infrastructure Transport

05 Dec 2025

BMC Resumes Rs 170 Billion Road Works, Targets 80 per cent By Jan 2026

Following the withdrawal of the southwest monsoon in October, the Brihanmumbai Municipal Corporation (BMC) has restarted work on 645 roads—covering 297.49 kilometres—under its large-scale concretisation programme. Data shows that more than 60 per cent of the resumed works are located in the western suburbs. Officials said the civic body aims to complete concretisation on 80 per cent of the roads where fresh work has begun by January 2026. Launched in 2022, the Rs 170 billion project seeks to concretise 700 kilometres of roads across Mumbai. All civil works were halted during the monsoon ..

Infrastructure Urban

05 Dec 2025

India Pushes Digital Shift In Urban Land Mapping

The Department of Land Resources (DoLR) under the Ministry of Rural Development has convened a National Symposium on NAKSHA – the National Geospatial Knowledge-based Land Survey of Urban Habitations – to advance India’s transition to modern, technology-driven land mapping. Speaking at the inaugural session, Secretary Manoj Joshi underscored the urgent need to move revenue departments away from outdated, tape-based methods and rough hand-drawn sketches. He stressed that adopting latitude–longitude-based digital mapping and GIS-linked registration systems is essential for economic stabi..