♦ The Union Cabinet on 26 November 2025 approved a Rs.7,280-crore scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM), a critical component used across electric vehicles, renewable energy systems, aerospace, defence and electronics. Chaired by Prime Minister Narendra Modi, the Cabinet cleared the “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets,” marking the first major government initiative to develop an integrated REPM ecosystem in India.

♦ The scheme aims to create domestic capacity of 6,000 metric tonnes per annum (MTPA) of sintered REPMs, thereby enhancing self-reliance and positioning India as a key player in the global REPM market.
Key Features of the Scheme:

♦ Total outlay: Rs.7,280 crore

♦ Sales-linked incentives: Rs.6,450 crore for a five-year period

♦ Capital subsidy: Rs.750 crore for setting up 6,000 MTPA capacity

♦ Beneficiaries: Five companies to be selected through a global competitive bidding process

♦ Capacity allotment: Up to 1,200 MTPA for each beneficiary

♦ Scheme duration: Seven years – including a two-year gestation period for setting up facilities and five years for incentive disbursement