The Union Cabinet has approved the “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs)” to secure India’s long-term supply of rare earth magnets and reduce dependence on imports.
- Sintering is a process where magnet materials are heated to high temperatures without melting. It strengthens the magnets, enhances magnetic performance, and makes them more resistant to corrosion.
Key Features of Scheme:
- Financial Outlay: ₹7,280 crore.
- Incentive Structure:-
- ₹6,450 crore as sales-linked incentives over five years.
- ₹750 crore as capital subsidy for facility setup.
- Incentive Structure:-
- Objective: Establish 6,000 Metric Tons per Annum (MTPA) of integrated REPMs manufacturing in India.
- Beneficiaries Allocation:
- The 6,000 MTPA capacity will be allocated to five beneficiaries through global competitive bidding.
- Each beneficiary may receive up to 1,200 MTPA capacity.
- End-to-End Manufacturing Integration: It supports the creation of facilities that cover the complete processing facilities:-
- Rare earth oxides → metals→ alloys→ finished rare earth permanent magnets
- Total Duration of the Scheme: 7 years
- 2 years: facility setup (gestation period)
- 5 years: incentive disbursement on sales
Rare Earth Permanent Magnets:
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