What is the New Scheme?
- Approval: The Union Cabinet has approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ (REPM).
- Strategic Goal: To establish a domestic capacity of 6,000 Metric Tonnes Per Annum (MTPA) of integrated REPM manufacturing.
- First-of-its-Kind: This initiative marks India’s entry into the complete value chain converting rare earth oxides to metals, metals to alloys, and alloys to finished magnets.
SCHEME AT A GLANCE
2. Key Features & Financials
- Total Outlay: ₹7,280 Crore.
- Incentive Structure:
- Sales-Linked Incentives: ₹6,450 Crore (disbursed over 5 years).
- Capital Subsidy: ₹750 Crore for setting up facilities.
- Beneficiaries: 5 entities will be selected via global competitive bidding (max capacity of 1,200 MTPA each).
- Duration: 7 Years total (2-year gestation period for plant setup + 5 years for incentive disbursement).
INDIA’S LEAP INTO CRITICAL MINERALS: THE REPM SCHEME
1. What is the New Scheme?
- Approval: The Union Cabinet has approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ (REPM).
- Strategic Goal: To establish a domestic capacity of 6,000 Metric Tonnes Per Annum (MTPA) of integrated REPM manufacturing.
- First-of-its-Kind: This initiative marks India’s entry into the complete value chain—converting rare earth oxides to metals, metals to alloys, and alloys to finished magnets.
SCHEME AT A GLANCE
2. Key Features & Financials
- Total Outlay: ₹7,280 Crore.
- Incentive Structure:
- Sales-Linked Incentives: ₹6,450 Crore (disbursed over 5 years).
- Capital Subsidy: ₹750 Crore for setting up facilities.
- Beneficiaries: 5 entities will be selected via global competitive bidding (max capacity of 1,200 MTPA each).
Duration: 7 Years total (2-year gestation period for plant setup + 5 years for incentive disbursement).
3. What are Rare Earth Permanent Magnets (REPM)?
- Definition: Permanent magnets manufactured from alloys of rare earth elements.
- Key Properties:
- High Magnetic Strength: Significantly stronger than standard ferrite or alnico magnets.
- Resistance: High resistance to demagnetization.
- Efficiency: Offers superior performance-to-size ratio, essential for miniaturization.
4. Major Types & Applications
- Neodymium Iron Boron (NdFeB):
- Composition: Neodymium, Iron, and Boron.
- Trait: The strongest commercially available permanent magnet.
- Uses: Electric Vehicle (EV) motors, hard disk drives, and consumer electronics.
- Samarium Cobalt (SmCo):
- Composition: Samarium and Cobalt.
- Trait: Excellent thermal stability and corrosion resistance; retains magnetism at high temperatures.
- Uses: Aerospace, defence systems, and high-speed motors.
5. Strategic Applications
- Green Energy: Vital for wind turbine generators.
- Mobility: Critical for traction motors in Electric Vehicles (EVs).
- Defence: Used in guidance systems, radar, and actuators.
