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India's Rs 7,280 Crore Push for Rare Earth Magnet Self-Reliance

Union Minister HD Kumaraswamy chaired a stakeholder meeting for a new scheme to promote the manufacturing of sintered rare earth permanent magnets (REPMs). The scheme has a total financial outlay of Rs 7,280 crore, offering incentives to establish domestic production capacity. It aligns with the broader national goal of achieving self-reliance in critical materials and technological sectors. The initiative includes capital subsidies and sales-linked incentives over a seven-year period to attract both domestic and international players.

Key Points: India's Rare Earth Magnet Scheme: Rs 7,280 Crore for Self-Reliance

  • Rs 7,280 crore financial outlay
  • Aims for 6,000 MTPA manufacturing capacity
  • 7-year scheme with sales-linked incentives
  • Part of Viksit Bharat 2047 vision
2 min read

HD Kumaraswamy chairs stakeholder meet on Rare Earth Magnet Manufacturing Scheme

Union Ministers HD Kumaraswamy and Ashwini Vaishnaw drive a new scheme to boost domestic manufacturing of critical rare earth permanent magnets.

"This consultation underscores the Government's commitment to fostering collaboration... to accelerate India's journey towards technological self-sufficiency - Ministry of Heavy Industries"

New Delhi, January 12

Union Minister for Heavy Industries and Steel HD Kumaraswamy on Monday chaired a stakeholder consultation meeting on the government's Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, marking a significant step towards strengthening India's self-reliance in critical materials.

In his inaugural address, the Minister emphasised that the Scheme represents a pivotal step towards establishing a self-reliant, resilient, and globally competitive ecosystem for REPMs, aligning with the vision of Viksit Bharat @2047.

He urged all eligible domestic and international players to seize this opportunity and contribute to India's long-term growth story by participating in the bidding process. The Minister also informed that the Ministry is in the process of finalising the Request for Proposal (RfP).

Union Minister Ashwini Vaishnaw is in the United States to participate in the Critical Minerals Ministerial meeting. Vaishnaw arrived in Washington, DC, and emphasised that securing critical mineral supply chains is vital for India's goal of Viksit Bharat.

During the meeting, the Joint Secretary of the Ministry of Heavy Industries explained the Scheme, highlighting the key features of the Scheme notified on December 15, 2025.

Furthermore, industry representatives outlined their capabilities and expressed interest in participating in the Scheme.

"This consultation underscores the Government's commitment to fostering collaboration between industry and policymakers to accelerate India's journey towards technological self-sufficiency and key stakeholders in critical materials," the Ministry of Heavy Industries said in a statement.

Notably, the total financial outlay for the Scheme is Rs 7,280 crore, including Rs 6,450 crore in sales-linked incentives on REPM sales and Rs 750 crore in capital subsidy for setting up an aggregate 6,000 MTPA of REPM manufacturing facilities, thereby bolstering self-reliance and positioning the country as a prominent player in the global REPM market.

The Scheme spans 7 years from the date of award, comprising a 2-year gestation period for establishing integrated REPM manufacturing facilities and 5 years for incentive disbursement on REPM sales.

- ANI

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Reader Comments

P
Priya S
Good step, but Rs 7,280 crore is a huge amount. I hope there is strict monitoring to ensure the funds are used effectively and create actual manufacturing capacity, not just remain on paper. We've seen schemes fail due to poor execution before.
R
Rohit P
Finally! We are too dependent on China for these critical materials. This is strategic for national security and our green energy goals. Minister Vaishnaw's push in the US for supply chains is also timely. Jai Hind!
S
Sarah B
As someone in the tech manufacturing sector, this is very welcome. The 2-year gestation period seems reasonable. The key will be ensuring raw material access. Does India have enough rare earth deposits, or will we still rely on imports for ore?
K
Karthik V
Hope MSMEs get a fair chance in the bidding and aren't sidelined by large international players. Domestic capability building should be the core focus. "Make in India" needs to be for Indian companies first.
M
Michael C
Positive move for global supply chain diversification. If India can establish itself as a reliable alternative manufacturer, it's good for the world. The sales-linked incentive model makes sense to ensure output.
N
Neha E
Great to see concrete

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