Rare Earth PLI: ₹7,280 Crore Boost for Made-in-India Magnets

The Union Cabinet has approved a ₹7,280-crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM), marking India’s first major effort to build a fully integrated domestic REPM ecosystem.

The scheme aims to establish 6,000 MTPA of manufacturing capacity and will support the entire value chain—from converting rare-earth oxides into metals and alloys to producing finished magnets used in electric vehicles, renewable energy systems, electronics, aerospace, and defence. Emphasising the technology’s strategic value, the government noted that REPMs are among the strongest permanent magnets and are vital for next-generation applications.

With India’s REPM demand expected to double by 2030, the initiative seeks to cut import dependence, create high-skilled jobs, and advance the country’s Net Zero 2070 goals. The programme includes ₹6,450 crore in sales-linked incentives over five years and ₹750 crore in capital subsidy. Capacity will be awarded through global competitive bidding to up to five manufacturers, each eligible for up to 1,200 MTPA, over a seven-year scheme period.

News by Rahul Yelligetti.