The move marks the formal rollout of the government’s ambitious scheme to boost domestic production of critical rare earth magnets, a key component in electric vehicles, wind energy systems, and advanced electronics.
Rare earth metals (Photo:IANS)
The Ministry of Heavy Industries on Friday released a Request for Proposal (RFP) to select beneficiaries for setting up integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities in India, with a total planned capacity of 6,000 metric tonnes per annum (MTPA).
The move marks the formal rollout of the government’s ambitious scheme to boost domestic production of critical rare earth magnets, a key component in electric vehicles, wind energy systems, and advanced electronics.
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Prospective applicants can now submit bids to establish integrated REPM manufacturing units and avail benefits, including capital subsidies and sales-linked incentives. The bidding process will be conducted online through the Central Public Procurement Portal using a transparent two-stage Least Cost System (LCS), comprising technical and financial bids.
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According to the ministry, tender documents will be available from March 20, 2026, while a pre-bid conference is scheduled for April 7. The deadline for submission of bids is May 28, and technical bids will be opened on May 29.
The scheme was approved on November 26, 2025, by the Union Cabinet chaired by Prime Minister Narendra Modi, with a total financial outlay of Rs 7,280 crore. It is the first initiative of its kind aimed at developing a domestic ecosystem for rare earth permanent magnets.
Under the scheme, selected beneficiaries will be allocated manufacturing capacities ranging from 600 MTPA to 1,200 MTPA in multiples of 100 MTPA. The government has earmarked Rs 750 crore as capital subsidy and Rs 6,450 crore for sales-linked incentives.
Additionally, the three lowest bidders will be assured a limited supply of NdPr oxide from IREL (India) Limited, a key raw material for manufacturing these magnets.
Rare earth permanent magnets are among the most powerful magnets globally and are critical for sectors such as electric mobility, renewable energy, aerospace, defence, and high-end electronics.
By developing an end-to-end value chain—from NdPr oxide to finished magnets—within the country, the government aims to significantly reduce import dependence and position India as a major player in the global REPM market.
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