The ministry of heavy industries has invited global bids for setting up integrated sintered rare earth permanent magnet (REPM) manufacturing facilities in India, marking a major step towards strengthening the country’s advanced manufacturing ecosystem.
The request for proposal (RFP), released on March 20, 2026, seeks to identify beneficiaries to establish a total capacity of 6,000 metric tonnes per annum (MTPA) under the government’s flagship scheme to promote domestic magnet manufacturing.
Transparent Bidding Framework
The bidding process will be conducted online via the central public procurement portal (CPP portal), following a two-stage least cost system (LCS) comprising technical and financial evaluations.
Key timelines include: pre-bid conference on April 7, 2026, bid submission deadline by May 28, 2026 and technical bid opening on May 29, 2026.
The transparent structure is aimed at attracting credible global and domestic players while ensuring competitive allocation of incentives.
Backed By ₹7,280 Crore Policy Push
The initiative stems from the scheme approved by the Union Cabinet in November 2025. With a total outlay of ₹7,280 crore, the scheme includes ₹750 crore capital subsidy and ₹6,450 crore in sales-linked incentives .
Each selected beneficiary will be allocated capacity ranging from 600 MTPA to 1,200 MTPA, enabling the creation of a distributed yet scalable manufacturing ecosystem.
Additionally, the three lowest bidders will receive limited assured supply of NdPr oxide from IREL (India) Ltd, supporting early-stage operations.
Strategic Push For Self-Reliance
Rare earth permanent magnets, particularly sintered NdFeB magnets, are critical components in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems.
India currently relies heavily on imports for these high-value materials. By building an end-to-end domestic value chain, from NdPr oxide to finished magnets, the government aims to significantly reduce import dependence while positioning India as a global manufacturing hub.
Enabling Energy Transition
The move is also aligned with India’s broader ambitions in clean energy and mobility, where demand for high-performance magnets is expected to surge.
By incentivising large-scale, integrated manufacturing, the scheme is expected to catalyse investments, foster technology transfer, and enhance India’s competitiveness in the global rare earth ecosystem.