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 6 000 metric tonnes per annum (MTPA) of sintered REPMs.

The key features of the Scheme are listed below:

1. Beneficiaries: The manufacturing capacity of 6 000 MTPA will be allocated among 5 beneficiaries through bidding;
2. 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);
3. Capital Subsidy: The beneficiaries will receive capital subsidies of INR 750 crore (~ 70 MEUR) for setting up their manufacturing capacity;
4. Feedstock: Three lowest-bidding beneficiaries will receive an assured limited supply of rare-earth oxides from IREL (India) Ltd, a public sector undertaking.

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