Minister Kumaraswamy Chairs Meeting on Rare Earth Magnet Manufacturing Scheme

The Union Minister for Heavy Industries & Steel, Shri H.D. Kumaraswamy, chaired a stakeholder consultation meeting on Sunday to advance the government's Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs). The session brought together senior government officials, public sector leaders, and domestic and international industry representatives to discuss implementation of the initiative.

The scheme, which was notified on December 15, 2025, allocates Rs. 7,280 crore in total financial support. This includes Rs. 6,450 crore in sales-linked incentives and Rs. 750 crore in capital subsidies to establish 6,000 metric tons per annum of REPM manufacturing capacity across India.

In his opening remarks, Minister Kumaraswamy characterized the program as a significant step toward building a self-reliant and competitive REPM ecosystem, consistent with the government's Viksit Bharat @2047 vision. He encouraged eligible participants from India and abroad to engage in the upcoming bidding process and contribute to the country's industrial development.

The scheme operates over a seven-year timeline, including a two-year gestation period for facility establishment followed by five years of incentive disbursement based on sales performance. The Ministry of Heavy Industries is currently finalizing the Request for Proposal documentation.

Attendees included the Secretary of the Ministry of Heavy Industries, the Secretary of the Department of Atomic Energy, and executives from IREL (India) Ltd., NMDC, and NFTDC. Industry representatives presented their technical capabilities and expressed interest in participating in the program.

Joint Secretary of the Ministry of Heavy Industries provided a detailed explanation of the scheme's structure and key features during the consultation.

Rare earth permanent magnets are critical components in electric vehicles, wind turbines, electronics, and defense applications. The initiative represents part of India's broader strategy to secure supply chains for strategic materials and reduce dependence on imports in sectors vital to economic and technological development.