New Delhi [India], November 26 (ANI): With an aim to enhance self-reliance and position India as a key player in the global REPM market, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a financial outlay of Rs 7,280 crore.

This first-of-its-kind initiative aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India.

Information and Broadcasting Minister Ashwini Vaishnaw said at a media briefing that they are targeting all the areas including capacity, plants, tonnage, and import-substitution targets to become Atmanirbhar bharat. 'We can become Atmanirbhar in the next 3 to 4 years,' the minister highlighted.

He was responding to a question by ANI on what outcomes government targets in the next 3-5 years through this move.

Speaking on the development, Chief Economic Advisor V Anantha Nageswaran, said, 'It's a long term goal that we have to become self-sufficient in these areas. We don't want our manufacturing and growth aspirations to be held hostage to the shortage of these materials due to whatever factors.'

Nageswaran also highlighted India's Semiconductor Mission.

'Semiconductor chips are becoming important. It is not just a material used in chip production; it also has a strategic dimension. Achieving some sort of self-resilience in that is important, and that is what India's semiconductor mission is all about.'

Shailesh Chandra, President, Society of Indian Automobile Manufacturers (SIAM) said, 'this initiative is a significant step toward building a resilient and stable supply chain, particularly for components and sub-assemblies essential for the production of electrified vehicles.'

'The scheme is expected to accelerate adoption of clean mobility solutions and support India's broader sustainability goals. By strengthening indigenous manufacturing capabilities, it will contribute to reducing carbon emissions and lowering dependence on crude oil imports, further enhancing the nation's energy security,' he added.

Raju Kumar, Partner and Energy Tax Leader, EY India said, 'The proposed support for magnet manufacturing, a segment where India has historically depended on global supply chains can unlock new opportunities across mining, processing, alloying and advanced materials. It creates headroom for Indian companies to participate in high-value applications spanning electric mobility, renewables, electronics and defence.'

He believed that the real test now is disciplined implementation, ensuring access to technology, developing high-quality processing capability, building responsible mining practices and maintaining ESG safeguards.

'If executed well, this initiative can help strengthening India's long-term energy-transition and manufacturing competitiveness.'

The total financial outlay of the REPM scheme is Rs 7280 crore, comprising sales-linked incentives of Rs 6450 crore on REPM sales for five years and capital subsidy of Rs.750 crore for setting up an aggregate of 6,000 MTPA of REPM manufacturing facilities.

The total duration of the scheme will be seven years from the date of award, including a two-year gestation period for setting up an integrated REPM manufacturing facility, and five years for incentive disbursement on the sale of REPM. (ANI)