The Ministry of Heavy Industries has invited global bids to establish manufacturing facilities for sintered rare earth permanent magnets (REPM) in India.
The move is part of a government-backed scheme aimed at strengthening domestic production of critical components used in sectors such as electric vehicles, renewable energy, and defence.
Key Highlights
- Global tender issued for setting up REPM manufacturing units
- Target capacity of 6,000 metric tonnes per annum (MTPA)
- ₹7,280 crore scheme includes capital subsidy and incentives
- Bidding to be conducted online through a two-stage process
- Deadline for bid submission: May 28, 2026
Boosting Domestic Manufacturing
The tender invites companies to set up integrated facilities for producing sintered Neodymium-Iron-Boron (NdFeB) magnets, among the strongest permanent magnets used in modern technology.
These magnets are critical for electric motors, wind turbines, advanced electronics, and aerospace systems.
The initiative aims to build a complete value chain in India—from raw materials to finished products—reducing reliance on imports.
Official Statement
The Ministry said the scheme is designed to encourage investment in high-technology manufacturing and position India as a global hub for rare earth magnet production.
Selected bidders will be eligible for capital subsidies and sales-linked incentives under the programme.
Bidding Process Explained
The bidding process will be conducted online through the Central Public Procurement (CPP) portal using a Least Cost System (LCS).
It will follow a two-stage evaluation:
- Technical bids
- Financial bids
Tender documents are available from March 20, with a pre-bid meeting scheduled for April 7. Technical bids will be opened on May 29.
Scheme Details and Incentives
The scheme, approved by the Union Cabinet in November 2025, has a total outlay of ₹7,280 crore.
It includes:
- ₹750 crore as capital subsidy
- ₹6,450 crore as sales-linked incentives
Each selected beneficiary will be allocated manufacturing capacity between 600 and 1,200 MTPA.
Additionally, limited assured supply of key raw material—NdPr oxide—will be provided through IREL India Limited to select bidders.
Context and Background
Rare earth permanent magnets are essential for clean energy technologies and advanced manufacturing.
India currently depends heavily on imports for these components, particularly for electric mobility and renewable energy sectors.
The scheme is part of broader efforts to reduce import dependence and strengthen domestic manufacturing under industrial policy initiatives.
Public Impact
The development of domestic REPM manufacturing could support India’s transition to electric vehicles and renewable energy by ensuring stable supply of critical components.
It may also create new jobs, attract investment, and enhance technological capabilities in high-value manufacturing sectors.
Conclusion
The launch of the global tender marks a significant step in building India’s capacity in rare earth magnet manufacturing.
With incentives and policy support in place, the government aims to establish a strong domestic ecosystem and position India as a key player in the global supply chain.
Source: PIB
Last Updated on: Friday, March 20, 2026 5:39 pm by Monisha Angara | Published by: Monisha Angara on Friday, March 20, 2026 5:39 pm | News Categories: Bengaluru
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