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Rs 7,280 Crore REPM Scheme: India’s Push to Make Rare-Earth Magnets for Defence and Aerospace
India has a new plan worth Rs 7,280 crore (a crore is 10 million, so this is about 72.8 billion rupees). The plan is called the REPM scheme. REPM means “Rare Earth Permanent Magnets” — very strong magnets made from special metals. These magnets sit inside electric cars, wind turbines, fighter jets, and missiles. Today India buys most of these magnets from other countries, mostly China. This plan wants India to make them at home instead. On 29 June 2026, the Ministry of Heavy Industries (the government office in charge) gave companies more time to apply for the project. This gave the plan a fresh push.
What changed this week
The government opened a global tender for this plan. A tender is an open invitation that asks companies to offer to do the work. Many companies asked for more time. So the Ministry moved the last day to apply from 29 June to 29 July 2026. The day to open the technical bids also moved, from 30 June to 30 July. (A technical bid is the part of the offer that shows how a company will do the job.)
The extra month should bring in more companies, both Indian and foreign. Officials say it gives firms time to team up, gather their papers, and arrange money. It also gives the Ministry time to answer questions and run a fair, clear process.
What the scheme actually aims to build
The Cabinet (the top group of government leaders) has approved this plan. The goal is to make 6,000 MTPA of these magnets in India. MTPA means “metric tonnes per annum” — in plain words, 6,000 tonnes of magnets each year. The plan is also “integrated.” That means the whole job is done inside India, from cleaning the raw metal to making the finished magnet.
The aim is to stop leaning so much on other countries. Instead, India wants a steady home supply for defence and aerospace (planes and space tools). These magnets are “critical inputs.” That means key machines simply will not work without them. They run electric cars, wind turbines, defence systems, and other high-tech tools.
Key facts at a glance
| Scheme size | Rs 7,280 crore |
| Target capacity | 6,000 MTPA (tonnes per year) of magnets |
| Run by | Ministry of Heavy Industries |
| New bid deadline | 29 July 2026 (was 29 June) |
| Technical bid opening | 30 July 2026 (was 30 June) |
| Main goal | Cut magnet imports; secure defence & aerospace supply |
Why the timing is urgent
The world has had a wake-up call about these magnets. China cleans and prepares most of these metals. When China cuts back on selling them, prices jump and supply gets shaky all over the world. Countries that buy from abroad suddenly find their car plants, wind-farm plans, and defence orders in danger. India is no different. That is why making these magnets at home is now a top job, not just a nice idea.
Demand is also rising fast. As India sells more electric cars and builds more clean-energy plants, it will need far more magnets each year. Add defence and aerospace needs on top, and the answer is clear. Buying from abroad alone is risky. A plan that makes 6,000 tonnes a year at home is a first step toward a safer supply.
Why magnets are a national-security issue
These magnets may sound dull, but they are a quiet superpower. A modern fighter jet, a guided missile, a submarine, and an electric car all need them. If a country cannot make them and the imports stop, its factories and defence plans can come to a halt. That is why making them at home is seen as a smart, safe move — not just a business one.
Why it matters (especially for India and founders)
For India, this is part of a bigger goal: make important things at home and depend less on other countries. For business owners (founders), it opens a door. Making magnets needs suppliers, machines, skilled workers, and services. New factories create new chances for people around them.
It also ties into the global car race. The same magnets run electric cars. Europe’s carmakers are fighting hard to keep up — a fight you can see in BMW’s push against fast-rising Chinese EVs. Whoever controls the magnet supply has an edge in the electric-car future.
FAQ
Why does India import these magnets today?
India can only process a small amount of these rare-earth metals and turn them into finished magnets. China leads this supply chain (the full path from raw metal to finished product). So most countries, including India, buy from China. The REPM scheme wants to build this skill at home.
What is a tender?
A tender is a formal, open invitation that asks companies to bid to do a project. The government then picks a winner based on price, skill, and other terms.
The takeaway
The Rs 7,280 crore REPM scheme is a bet on standing on its own feet, in a material the whole world is rushing to get. By moving the deadline to 29 July, India is trying to bring in the best partners to make magnets at a big scale. It is a quiet but very important step for India’s defence, aerospace, and electric-car future.
Source: Financial Express.
