On 26 November 2025, the Union Cabinet approved a ₹7,280-crore scheme for establishing large-scale, integrated manufacturing of sintered Rare Earth Permanent Magnets (REPM) in India. The programme targets a domestic production capacity of 6,000 MTPA, covering the full chain from rare-earth materials to finished magnets.
What’s Announced
- The government has approved a ₹7,280-crore programme aimed at building domestic capacity for sintered Rare Earth Permanent Magnets (REPM).
- The plan targets 6,000 MTPA of integrated output, covering raw material processing to magnet production.
- Support includes sales-linked incentives (₹6,450 crore) and capital assistance (₹750 crore) to help set up facilities.
- Capacity will be awarded through global competitive bidding, with up to 1,200 MTPA allocated per selected unit.
- The scheme is designed to bolster supply chains for EVs, renewables, electronics, aerospace and defence manufacturing.
MSME Opportunities to Watch
The proposed REPM ecosystem opens participation avenues for MSMEs in component fabrication, alloy processing, tooling, precision machining, quality services, logistics partnerships, and skill development support—especially for those aligned with EV and clean-energy supply chains.
Source: PIB Press Release (26 Nov 2025)
