News: The Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets with a financial outlay of Rs. 7,280 crore.
About Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
- It is a first-of-its-kind national initiative to build a complete domestic supply chain from rare earth oxides to finished high-performance Rare Earth Permanent Magnets (REPMs).
- It will support setting up integrated REPM manufacturing units that convert rare earth oxides into metals, then metals into alloys, and finally alloys into finished magnets.
- Nodal ministry: The nodal ministry is the Ministry of Mines (with oversight from the Department of Atomic Energy and NITI Aayog).
- Targets
- Establish 6,000 Metric Tons per Annum (MTPA) integrated REPM manufacturing capacity.
- Select 5 beneficiaries through global competitive bidding, each with up to 1,200 MTPA capacity.
- Financial outlay
- Total outlay: Rs. 7,280 crore
- Rs. 6,450 crore as sales-linked incentives for five years.
- Rs. 750 crore as capital subsidy for setting up 6,000 MTPA capacity.
- Total outlay: Rs. 7,280 crore
- Duration: The total duration of the scheme will be 7 years from the date of award which include-
- a 2-year gestation period for setting up an integrated REPM manufacturing facility
- 5 years for incentive disbursement on the sale of REPM.
Current Status of India w.r.t. Rare Earth Permanent Magnets (REPMs)
- Rare earth reserves in India: India has 6.9 million tonnes of rare earth reserves, (5th largest globally), yet contributes around 1% to global production.
- Distribution:
- It spread across coastal placer sands in Odisha, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat.
- It is also found in hard-rock deposits in Rajasthan and Gujarat.
- Distribution:
- REPMs consumption in India: India currently consumes about 4,000–5,000 tons per annum (TPA) of permanent magnets.
- Future demand: REPM demand is expected to double by 2030 from 2025 due to electric vehicles, renewable energy, and electronics.
- Import dependent: Presently, REPM demand is almost fully import-dependent.
NOTE: For more information on Rare Earth Permanent Magnets (REPMs), please click here.
