New Delhi, March 21 (BNP): The Ministry of Heavy Industries has invited global bids for setting up integrated Sintered Rare Earth Permanent Magnet manufacturing facilities in India, under a flagship scheme aimed at boosting domestic production and reducing import dependence.
The Request for Proposal (RFP) seeks to establish facilities for manufacturing Sintered NdFeB Rare Earth Permanent Magnets with a total capacity of 6,000 Metric Tonnes Per Annum (MTPA). The bidding process will be conducted online through the Central Public Procurement (CPP) Portal using a transparent two-stage Least Cost System (LCS), comprising technical and financial bids.
According to the Ministry, the tender documents have been made available from March 20, 2026, with a pre-bid conference scheduled for April 7. The last date for submission of bids is May 28, while technical bids will be opened on May 29.
The scheme, approved by the Union Cabinet chaired by Prime Minister Narendra Modi in November 2025, has a financial outlay of ₹7,280 crore and aims to position India as a key player in the global rare earth magnet market.
Under the initiative, selected beneficiaries will be eligible for a capital subsidy of ₹750 crore and sales-linked incentives worth ₹6,450 crore. Each participant will be allocated manufacturing capacity ranging from 600 to 1,200 MTPA.
The scheme also provides for limited assured supply of NdPr oxide from IREL (India) Limited to the three lowest bidders, ensuring raw material availability for production.
Rare Earth Permanent Magnets are critical components used in sectors such as electric vehicles, wind energy, electronics, aerospace, and defence. Officials said the development of a complete domestic value chain—from raw materials to finished magnets—will significantly reduce reliance on imports and strengthen India’s strategic and industrial capabilities.
The Ministry said the initiative marks a major step towards building a self-reliant ecosystem in advanced materials and clean energy technologies.
