12 January 2026·PIB

Union Minister for Heavy Industries & Steel Chairs Stakeholder Consultation Meeting on Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets.

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1. At a Glance

Central Sector Scheme of the Ministry of Heavy Industries (MHI) with a ₹7,280 crore outlay to build domestic sintered NdFeB rare-earth permanent magnet capacity [2][3].
Targets strategic self-reliance (Atmanirbharta) in a critical input for EVs, wind turbines, drones, electronics & defence, breaking dependence on Chinese supply chains; aligned with Viksit Bharat @2047 [1][2].

12 January 2026: Union Minister for Heavy Industries & Steel H.D. Kumaraswamy chaired a stakeholder consultation meeting with Secretary DAE, CMD IREL (India) Ltd, Director (Technical) NMDC, Director NFTDC and Indian/foreign industry [1].
Follows Cabinet approval on the scheme and a Global Tender / Request for Proposal issued by MHI for 6,000 MTPA capacity [2][3].

India holds the 5th-largest rare-earth reserves globally but lacks downstream magnet-making capacity; almost all sintered REPMs are imported, largely from China.
Union Budget 2025-26: Announced support for critical-minerals & magnet manufacturing.
2025: Cabinet approved the REPM Scheme with ₹7,280 cr outlay [2].
Jan 2026: Stakeholder consultation chaired by Minister Kumaraswamy [1].
Followed by Global Tender and pre-bid conference by MHI [2].

Nodal Ministry: Ministry of Heavy Industries (MHI) [1][2].
Outlay: ₹7,280 crore [2][3].
Capital subsidy: ₹750 crore (CapEx support) [3].
Sales-linked incentive: ₹6,450 crore over 5 years [3].
Target capacity: 6,000 MTPA of integrated sintered NdFeB REPM [2][3].
Duration: 7 years from award = 2 yr gestation + 5 yr incentive disbursal [3].
Beneficiaries: Up to 5 firms, each allotted 600–1,200 MTPA (in multiples of 100 MTPA) via global competitive bidding [2][3].
Magnet type: Sintered NdFeB (Neodymium-Iron-Boron) permanent magnets [2].
Key public-sector partners: IREL (India) Ltd (DAE), NMDC, NFTDC (Hyderabad) [1].

Economic: Reduces import bill on critical magnets; anchors EV, wind-energy and consumer-electronics value chains; expected to crowd-in private CapEx via subsidy + sales-linked incentive design.
Strategic / Geopolitical: Cuts exposure to Chinese export controls on rare-earth magnets (China processes ~90% of global REPMs); complements Critical Minerals Mission and Quad supply-chain resilience efforts.
Scientific / Technological: Requires mastery of separation, alloying, sintering and magnetising; NFTDC and BARC/IREL provide indigenous tech base [1].
Environmental: Rare-earth processing produces radioactive thorium tailings — DAE oversight via IREL critical for safe handling.
Administrative: Scheme run by MHI but raw-material chain sits with DAE (atomic minerals are a Schedule-I "prescribed substance" under the Atomic Energy Act, 1962), creating an inter-ministerial coordination challenge.

2025: Cabinet clears ₹7,280 cr REPM Scheme [2].
2025: MHI issues Global Tender / RFP for 6,000 MTPA capacity to 5 beneficiaries [2].
12 Jan 2026: Minister Kumaraswamy chairs stakeholder consultation; foreign firms participate [1].
2025-26: Pre-bid conference held; positive industry response reported by MHI [2].

Scheme administered by Ministry of Heavy Industries, NOT Ministry of Mines [1].
Total outlay: ₹7,280 crore [2].
Split: ₹750 cr CapEx subsidy + ₹6,450 cr sales-linked incentive [3].
Target capacity: 6,000 MTPA of sintered NdFeB REPM [2].
Scheme duration: 7 years (2 gestation + 5 incentive) [3].
Beneficiaries: up to 5 firms, 600–1,200 MTPA each [2][3].
Selection mode: Global competitive bidding [3].
Magnet chemistry: Neodymium-Iron-Boron (NdFeB), sintered variety [2].
Public-sector implementers consulted: IREL (India) Ltd, NMDC, NFTDC [1].
IREL falls under Department of Atomic Energy, not Ministry of Mines [1].
Union Minister for Heavy Industries & Steel: H.D. Kumaraswamy [1].
Stakeholder consultation date: 12 January 2026 [1].
Vision alignment: Viksit Bharat @2047 [1].

GS-III: Indian Economy (industrial policy, manufacturing), Science & Tech (strategic materials), Infrastructure & Energy (EV/renewables), Security (critical-minerals supply chains).
GS-II: Government policies & interventions; India-China economic relations.
Likely stems: 1. "Domestic manufacturing of rare-earth permanent magnets is as much a strategic imperative as an industrial one." Examine in light of the recent REPM scheme. 2. Discuss India's vulnerabilities in critical-mineral value chains and evaluate recent policy responses. 3. How can production-linked-incentive-style schemes balance fiscal cost with strategic autonomy in sunrise sectors?

National Critical Minerals Mission (2025) — upstream complement to REPM scheme.
PLI Schemes (Auto, ACC Battery, Electronics) — sister demand-side incentives.
KABIL (Khanij Bidesh India Ltd) — overseas acquisition of critical minerals.
Atomic Energy Act, 1962 & DAE/IREL — governs rare-earth processing.
MMDR Amendment Act, 2023 — declassified 12 minerals incl. lithium from atomic list, enabling private mining.
Quad Critical & Emerging Tech Working Group — supply-chain diplomacy.
EV30@30, FAME-II/III, PM E-DRIVE — downstream demand drivers for magnets.
China's rare-earth export controls (2023-25) — trigger context.

Confusing Ministry of Heavy Industries with Ministry of Mines or Ministry of Steel — scheme is under MHI [1].
Confusing the ₹7,280 cr REPM scheme with the older PLI for Auto & Auto Components or the ACC Battery PLI.
Mis-stating outlay split: it is ₹750 cr CapEx + ₹6,450 cr sales-linked, not a single PLI pool [3].
Assuming IREL is under Mines — it is under Department of Atomic Energy [1].
Magnet type: scheme covers sintered NdFeB, not Samarium-Cobalt or bonded magnets [2].
Total capacity is 6,000 MTPA, not 6,000 tonnes one-time.

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