- Why in news
- On 13 August 2026, the Ministry of Heavy Industries opened technical bids for its sintered rare earth permanent magnet (REPM) scheme after receiving 20 bids on the CPP portal by the 12 August deadline.
- What it is
- The Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets is a Ministry of Heavy Industries scheme. It aims to build integrated sintered NdFeB magnet capacity in India, from NdPr oxide to finished magnets. Capacity is awarded through global competitive bidding, and incentives are paid on the sale of magnets.
- Capacity target
- The scheme targets 6,000 MTPA of integrated REPM manufacturing capacity in India.
- Duration
- The scheme runs 7 years from the date of award: a 2-year gestation period plus 5 years of incentive on sales.
- Uses
- REPMs are used in electric vehicles, wind turbines, high-end electronics, aerospace and defence.
- Outlay
- The Union Cabinet approved the scheme on 26 November 2025 with an outlay of Rs 7,280 crore.
- Tender
- The global tender was invited on 20 March 2026 to select manufacturers as beneficiaries.
- Value chain
- The scheme covers the chain from NdPr oxide to finished magnets.
Don’t confuse with REPM scheme vs National Critical Mineral Mission: The REPM scheme is an MHI manufacturing incentive for magnets. The National Critical Mineral Mission is a Ministry of Mines programme for mineral exploration, mining and processing.
Don’t confuse with Rare earth magnets vs critical mineral mission: The REPM scheme (MHI) funds magnet manufacturing. The National Critical Mineral Mission (Ministry of Mines) deals with mineral exploration and processing.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Reduces import dependence for magnets used in EVs, wind turbines and defence.
- Supports clean energy goals, including Net Zero 2070.
- Cuts import dependence for magnets used in EVs, wind turbines, electronics and defence.
- Builds a domestic value chain for a strategic sector.
Problems
- Dependence on imported NdPr oxide and processing technology.
- Competing with established, low-cost global producers.
- Securing a steady supply of rare earth oxides and processing technology.
- Competing with established global producers on cost.
Way forward
- Secure raw material supply through domestic recycling and overseas partnerships.
- Back the scheme with R&D and technology partnerships.
- Link magnet capacity with domestic mining, refining and recycling of rare earths.
- Ensure transparent bidding and timely capacity creation.
Put in your answer
End uses: REPMs are used in EVs, wind turbines, high-end electronics, aerospace and defence.
- 2025Mains GS3 · Q12Rationale, achievements, and improvements of the Production Linked Incentive scheme
- 2025Mains GS3 · Q16Challenges to semiconductor manufacturing in India and India Semiconductor Mission features
- 2023Mains GS3 · Q1Government policies to raise manufacturing share in GDP, especially MSMEs
- 2026Prelims Q95Statements on rare earth elements' uses, mining share, and the National Critical Mineral Mission
- 2025Prelims Q6Statements on India's critical minerals policy, MSP membership, and MMDR auction amendment
- 2025Prelims Q81Whether rare earth elements are used in TV screens and have phosphorescent properties
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Single answer
Ours, not from a UPSC paper
Consider the following statements regarding the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM):
Which one of the following is correct?
True or false?
1 of 11
Statements the way Prelims prints them. Say first, then see the fact.
1.The scheme is administered by the Ministry of Heavy Industries.
True. MHI issued the scheme notification and is running the tender.
2.The scheme has a financial outlay of Rs 7,280 crore.
True. The Cabinet approved an outlay of Rs 7,280 crore.
3.The scheme aims to establish 6,000 MTPA of integrated REPM manufacturing capacity.
True. Total targeted capacity is 6,000 MTPA.
4.The scheme's total duration is 7 years from the date of award, including a 2-year gestation period.
True. 2 years for setup plus 5 years of incentives gives 7 years.
5.Incentives under the scheme are paid for 5 years as capital subsidy on setting up the plant, before production begins.
False. Incentives are disbursed for 5 years on the sale of REPM, after the 2-year gestation period.
6.The scheme seeks to build a value chain in India from NdPr oxide to finished magnets.
True. It covers the integrated chain from NdPr oxide to finished magnets.
7.Beneficiaries are selected through nomination by the Ministry of Mines without competitive bidding.
False. They are selected through global competitive bidding on the CPP portal.
8.The REPM scheme is administered by the Ministry of Heavy Industries.
True. MHI runs the scheme and issued the tender.
9.The scheme targets a total capacity of 6,000 metric tons per annum of integrated REPM manufacturing.
True. Target is 6,000 MTPA.
10.The scheme aims to build a value chain only for finished magnets, leaving out NdPr oxide.
False. It covers the complete chain from NdPr oxide to finished magnets.
11.Neodymium-iron-boron (NdFeB) magnets, the type covered by the scheme, are permanent magnets made using rare earth elements.
True. Sintered NdFeB magnets use neodymium and praseodymium, which are rare earth elements.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.