INTIEAIndia · Scheme to Promote Manufacturing of Sintered Rare Earth Permanent MagnetPolicyIn force

Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet

The Scheme aims to establish fully integrated domestic manufacturing ecosystem for rare-earth permanent magnets (REPMs) in India, from oxide feedstocks to end products. It has a budgetary outlay of INR 7 280 crore (~ 670 MEUR) and intends to create manufacturing capacity of 6…

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Country / jurisdiction: India · Year: 2026 · Status: In force · Level: National · Type: Voluntary

The Scheme aims to establish fully integrated domestic manufacturing ecosystem for rare-earth permanent magnets (REPMs) in India, from oxide feedstocks to end products. It has a budgetary outlay of INR 7 280 crore (~ 670 MEUR) and intends to create manufacturing capacity of 6 000 metric tonnes per annum (MTPA) of sintered REPMs.

The key features of the Scheme are listed below:

Beneficiaries : The manufacturing capacity of 6 000 MTPA will be allocated among 5 beneficiaries through bidding;

Incentives : The beneficiaries will receive sales-linked incentive of INR 6,450 crore (~ 590 MEUR) on the sale of sintered REPMs over 5 years (after a 2-year gestation period);

Capital Subsidy: The beneficiaries will receive capital subsidies of INR 750 crore (~ 70 MEUR) for setting up their manufacturing capacity;

Feedstock : Three lowest-bidding beneficiaries will receive an assured limited supply of rare-earth oxides from IREL (India) Ltd, a public sector undertaking.

Official source: https://heavyindustries.gov.in/sites/default/files/2025-12/scheme_notification_0.pdf

Source

https://www.iea.org/policies/31270

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