Rare Earth Permanent Magnets (REPM)
Scheme Overview
- Scheme Approval: Government approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)’ with ₹7,280 crore funding.
- Goal: Establish 6,000 MTPA of integrated REPM manufacturing capacity in India, covering the entire value chain—from rare-earth oxides to finished magnets.
- Key Sectors Impacted: Electric vehicles (EVs), renewable energy systems, aerospace, defense, and electronics.
- Long-Term Vision: Supports India’s Atmanirbhar Bharat and Net Zero 2070 goals by ensuring self-reliance and strengthening supply chains.
What is REPM?
- REPMs are among the strongest permanent magnets and are essential for technologies requiring compact, high-performance magnetic components.
- Used in:
- EV motors
- Wind turbine generators
- Consumer and industrial electronics
- Aerospace and defense systems
- Precision sensors and actuators
India’s Current Landscape
- Rich Rare-Earth Mineral Resources: India has vast monazite deposits across coastal and inland regions, holding 7.23 million tonnes of rare-earth oxides (REO).
- Current Import Dependency: Despite having abundant resources, India still imports REPMs, especially from China (59.6% to 81.3% of value).
- Demand Projections: REPM consumption in India is expected to double by 2030 due to growth in EVs, renewable energy, and electronics manufacturing.
Core Elements of the Scheme
- Comprehensive Framework:
- End-to-end REPM manufacturing (from rare-earth oxides to finished magnets).
- 6,000 MTPA of production capacity across India.
- Competitive Bidding: Capacity distribution among up to 5 beneficiaries, with each eligible for up to 1,200 MTPA.
- Financial Incentives:
- ₹6,450 crore allocated for sales-linked incentives over 5 years.
- ₹750 crore capital subsidy for establishing advanced manufacturing facilities.
- 7-Year Implementation Timeline:
- 2 years for facility setup.
- 5 years of incentive disbursement linked to REPM sales.
National Priorities and Alignment with Government Initiatives
- Self-Reliance & National Security:
- Supports India’s push for self-reliance in critical technologies, especially in defense and aerospace.
- Reduces dependence on foreign imports, enhancing national security.
- Clean Energy Transition:
- Supports Net Zero 2070 vision by promoting energy-efficient technologies like wind turbines and EVs.
- National Critical Minerals Mission (NCMM): Strengthens India’s critical minerals ecosystem, boosting domestic supply chains for rare-earth materials.
Global Context and India’s Opportunity
- Global Supply Chain Disruptions: REPM supply chains have been volatile, underscoring the importance of domestic production for resilience.
- Bilateral Agreements: India has entered agreements with mineral-rich countries (Australia, Argentina, Zambia, etc.) to secure essential minerals.
- Multilateral Platforms: India participates in initiatives like Minerals Security Partnership (MSP) and Indo-Pacific Economic Framework (IPEF) to enhance global mineral supply security.
- Strategic Positioning: India’s REPM manufacturing will improve its position in global value chains for advanced materials and contribute to industrial growth at home.
End-to-End Value Chain Strategy
- NCMM’s Role: India’s National Critical Minerals Mission (NCMM), launched in 2025, aims to ensure a sustainable, long-term supply of critical minerals by improving exploration, mining, and processing capabilities.
- Policy Reforms: Amendments to the Mines and Minerals (Development and Regulation) Act (MMDR Act) enable greater private participation and efficient auctioning of mining licenses.
Conclusion
- Competitiveness and Scalability: The scheme will make India more competitive in the global REPM market, attract technology-driven investments, and support long-term industrial growth.
- Economic and Strategic Benefits: The scheme will contribute to India’s clean energy goals, national security, and self-reliance in defense and advanced manufacturing sectors.
- Employment and Innovation: The initiative will generate jobs, deepen industrial capacity, and support technological innovation.
- Alignment with National Goals: The REPM scheme is aligned with India’s broader objectives for energy transition, industrial development, and critical mineral supply chains.
In summary, this initiative establishes a domestic REPM manufacturing ecosystem, supporting India’s technological advancement, sustainability goals, and national security, while also positioning India as a global leader in high-performance magnet production.
Operational Guidelines for Shipbuilding Schemes – (SBFAS) & (SbDS)
Background and Context
- The Ministry of Ports, Shipping & Waterways (MoPSW) notified operational guidelines for two major shipbuilding initiatives on December 27, 2025.
- The initiatives are:
- Shipbuilding Financial Assistance Scheme (SBFAS)
- Shipbuilding Development Scheme (SbDS)
- Objective: Strengthen domestic shipbuilding capacity, improve global competitiveness, and support Atmanirbhar Bharat and Viksit Bharat goals.
- Guidelines aim to ensure transparent, accountable and structured implementation.
Shipbuilding Financial Assistance Scheme (SBFAS)
Financial Outlay and Coverage
- Total corpus: ₹24,736 crore.
- Government financial assistance per vessel ranges from 15% to 25%, based on vessel category.
- Applies to:
- Small normal vessels
- Large normal vessels
- Specialised vessels
- Includes incentives for series orders, encouraging economies of scale.
Implementation Framework
- Stage-wise disbursement linked to clearly defined construction milestones.
- Mandatory security instruments, independent valuation, and milestone-based assessments.
- Focus on improving governance and efficient utilisation of public funds.
Key Institutional and Policy Features
- Establishment of a National Shipbuilding Mission for coordinated planning and execution.
- Introduction of a Shipbreaking Credit Note:
- Ship owners scrapping vessels at Indian yards receive 40% of scrap value as credit.
- Credit can be used for building new ships in India.
- Promotes a circular economy by linking ship recycling with new construction.
Economic Impact
- Expected to support shipbuilding projects worth approximately ₹96,000 crore over the next decade.
- Aims to:
- Stimulate domestic manufacturing
- Generate employment across the maritime value chain
- Strengthen forward and backward industrial linkages
Shipbuilding Development Scheme (SbDS)
Financial Outlay and Focus
- Total budgetary outlay: ₹19,989 crore.
- Focuses on long-term capacity and capability creation rather than per-vessel support.
Infrastructure Development
- Greenfield shipbuilding clusters:
- Receive 100% capital support for common maritime and internal infrastructure.
- Implemented through a 50:50 Centre–State Special Purpose Vehicle (SPV).
- Brownfield shipyard expansion:
- Existing shipyards eligible for 25% capital assistance.
- Covers critical infrastructure such as:
- Dry docks
- Shiplifts
- Fabrication facilities
- Automation systems
Technology, R&D and Skills
- Establishment of an India Ship Technology Centre under the Indian Maritime University.
- Aims to promote:
- Ship design and innovation
- Research and development
- Skill development and workforce upgradation
Financial Risk Mitigation
- Introduction of a Credit Risk Coverage Framework:
- Government-backed insurance for:
- Pre-shipment risks
- Post-shipment risks
- Vendor default risks
- Improves project bankability and financial resilience.
- Government-backed insurance for:
Projected Outcomes and Long-Term Vision
- India’s commercial shipbuilding capacity projected to reach ~4.5 million gross tonnage per annum by 2047.
- Both schemes valid until March 31, 2036, with an in-principle extension up to 2047.
- Expected outcomes include:
- Employment generation
- Indigenous technology development
- Strengthened maritime security
- Enhanced economic resilience
Strategic Significance
- Provides a policy reset for India’s shipbuilding sector.
- Enhances Make in India through domestic manufacturing and investment attraction.
- Builds world-class shipbuilding infrastructure and skilled manpower.
- Positions India as a major global maritime nation, aligned with:
- Atmanirbhar Bharat
- Viksit Bharat @2047
Overall Analysis
- SBFAS addresses short- to medium-term demand stimulation through financial incentives.
- SbDS focuses on long-term structural transformation via infrastructure, technology, and risk mitigation.
- Together, the schemes create a holistic shipbuilding ecosystem, linking finance, infrastructure, recycling, innovation, and skills.