Govt Unveils ₹7,280-Crore Push to Build India’s Rare Earth Magnet Manufacturing Ecosystem

The Minister informed stakeholders that the Ministry of Heavy Industries is in the advanced stages of finalising the Request for Proposal (RfP), signalling the imminent operationalisation of the Scheme.

In a decisive move to strengthen India’s position in critical and strategic materials, Union Minister for Heavy Industries & Steel, Shri H. D. Kumaraswamy, today chaired a high-level stakeholder consultation on the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs)’, bringing together key policymakers, public sector leaders, and domestic and international industry players.

The consultation was attended by the Secretary, Ministry of Heavy Industries; Secretary, Department of Atomic Energy; CMD, IREL (India) Ltd.; Director (Technical), NMDC; Director, NFTDC, along with representatives from global and Indian manufacturing firms—underscoring the strategic importance of REPMs in India’s industrial and clean-energy transition.

In his inaugural address, Shri Kumaraswamy described the Scheme as a pivotal step towards building a self-reliant, resilient, and globally competitive REPM ecosystem, aligned with the national vision of Viksit Bharat @2047. Highlighting the geopolitical and supply-chain significance of rare earth magnets—critical for electric vehicles, renewable energy systems, electronics, defence, and advanced manufacturing—the Minister urged eligible domestic and international companies to actively participate in the upcoming bidding process.

The Minister informed stakeholders that the Ministry of Heavy Industries is in the advanced stages of finalising the Request for Proposal (RfP), signalling the imminent operationalisation of the Scheme.

Explaining the Scheme, the Joint Secretary, Ministry of Heavy Industries, noted that it was officially notified on 15 December 2025 and features one of the most ambitious incentive frameworks ever launched in the strategic materials sector. The Scheme carries a total financial outlay of ₹7,280 crore, comprising ₹6,450 crore in sales-linked incentives on REPM sales and ₹750 crore in capital subsidy to support the creation of an aggregate 6,000 metric tonnes per annum (MTPA) of domestic REPM manufacturing capacity.

The Scheme spans seven years, including a two-year gestation period for setting up integrated REPM manufacturing facilities, followed by five years of incentive disbursement linked to actual sales—ensuring performance-based support and long-term viability.

During the consultation, industry representatives presented their technical capabilities, investment readiness, and interest in participating, highlighting opportunities for technology transfer, integrated value chains, and global partnerships within India’s emerging rare earth ecosystem.

The stakeholder dialogue reaffirmed the Government of India’s commitment to industry–policy collaboration as a cornerstone of technological self-sufficiency. By targeting a critical choke-point in global supply chains, the Scheme positions India to emerge as a reliable global supplier of high-performance rare earth magnets, while reducing import dependence and strengthening strategic autonomy.

Call to Action for Manufacturers and Technology Leaders:The Ministry of Heavy Industries is encouraging EV manufacturers, clean-energy companies, advanced materials firms, rare-earth processors, and global technology leaders to engage early with the Scheme. Early movers stand to benefit from financial incentives, policy certainty, and first-mover advantage as India builds a future-ready REPM manufacturing base critical to the next generation of industrial growth.