New Delhi, August 13: The Indian government’s initiative to boost rare earth magnet manufacturing has garnered significant interest, receiving 20 bids. This development is set to enhance the country’s rare earth ecosystem, as announced by the Ministry of Heavy Industries on Thursday.
According to an official statement, the Ministry of Heavy Industries (MHI) has received 20 bids under the plan to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM). This initiative is a crucial step towards strengthening domestic REPM manufacturing capabilities and increasing competitiveness in the global market.
On November 25, 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the “Scheme for Promotion of Manufacturing of Sintered Rare Earth Permanent Magnets” with a financial provision of ₹7,280 crores. The Ministry of Heavy Industries issued the notification for the scheme on December 15, 2025.
A request for proposals was released on the CPP portal on March 20, 2026. A pre-bid conference was held on April 7, 2026, and the deadline for bid submissions was August 12, 2026. Technical bids were opened on August 13, 2026, in the presence of bidders at the Ministry of Heavy Industries.
This pioneering scheme aims to establish integrated rare earth permanent magnet manufacturing plants with a total capacity of 6,000 metric tons per year in India. This will enhance self-reliance in the country and strengthen India’s position in the global REPM market.
Under the scheme, the total capacity will be allocated to five beneficiaries through a globally competitive bidding process. Each beneficiary will receive a maximum capacity allocation of 1,200 metric tons per year.
According to the ministry, the total duration of the scheme will be seven years, which includes a two-year period for establishing integrated REPM manufacturing plants and a five-year period for incentivizing REPM sales.
Rare earth permanent magnets are among the most powerful magnets in the world. They are widely used in electric vehicles, wind turbines, high-tech electronic devices, aerospace, and defense systems. Developing the entire value chain from NDPR oxide to finished magnets in India is expected to reduce dependence on imports in this sector.
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