Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets

Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets Latest News

Recently, the Union Cabinet approved the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ with a financial outlay of Rs.7280 crore.

About Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets

• It aims to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India.
• It will support the creation of integrated REPM manufacturing facilities, involving conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.

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Features of Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets

• Total financial outlay: Rs. 7,280 crore
  • Sales-linked incentives: Rs. 6,450 crore (5 years)
  • Capital subsidy: Rs. 750 crore
• Capacity allocation: 6,000 MTPA to 5 beneficiaries (up to 1,200 MTPA each) via global competitive bidding process.
• Duration: 7 years (2 years for setting up an integrated REPM manufacturing facility + 5 years incentive disbursement on the sale of REPM.)
• With this initiative, India will establish its first ever integrated REPM manufacturing facilities in India.

 What are Rare Earth Magnets?

• These are a type of permanent magnet made from alloys of rare earth elements. 
• Properties: Exceptional magnetic strength, high energy density, and superior performance compared to other types of magnets.
• Types: 
  • Neodymium (Nd-Fe-B) and Samarium Cobalt (SmCo) are the two most common types of rare earth magnet materials. Both types are extremely strong.
  • Neo magnets are composed primarily of neodymium, boron and iron, and samarium cobalt is composed of samarium and cobalt.
• Applications: These are used in electric vehicles, renewable energy, electronics, aerospace, and defence applications.

Source: PIB