The Ministry of Heavy Industries has invited global bids for setting up integrated Sintered Rare Earth Permanent Magnet manufacturing facilities in India, marking a key step in strengthening the country’s advanced manufacturing ecosystem.
In a statement on Friday, 20 March, the ministry has issued a Request for Proposal (RFP) for selecting beneficiaries to establish Sintered NdFeB Rare Earth Permanent Magnet (REPM) facilities with a total capacity of 6,000 Metric Tonnes Per Annum (MTPA) under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet.
The bidding process will be conducted online through the Central Public Procurement (CPP) Portal using a transparent Least Cost System (LCS) in a two-stage format, comprising technical and financial bids.
The tender documents have been made available from today, 20 March, while the pre-bid conference is scheduled for 7 April.
The last date for submission of bids is 28 May 2026, and technical bids will be opened on 29 May 2026.
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The scheme, approved by the Union Cabinet on 26 November 2025 with a financial outlay of ₹7,280 crore, is designed to establish domestic manufacturing capacity and reduce dependence on imports in the critical rare earth magnet sector.
Under the scheme, each selected beneficiary will be allocated capacity ranging from 600 MTPA to 1,200 MTPA, in multiples of 100 MTPA.
The scheme includes a capital subsidy of ₹750 crore and a sales-linked incentive of ₹6,450 crore.
Additionally, limited assured supply of NdPr oxide from IREL (India) Ltd. will be provided to the three lowest bidders, ensuring raw material availability for early-stage operations.
Rare Earth Permanent Magnets are critical components used in electric vehicles, wind turbines, high-end electronics, aerospace, and defence systems.
By developing a complete value chain from NdPr oxide to finished magnets within the country, the scheme aims to position India as a key player in the global REPM market while enhancing self-reliance in strategic technologies.
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