Ministry of Heavy Industries has issued a Request for Proposal (RFP) to select beneficiaries for setting up integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities in India. The initiative aims to establish a total capacity of 6,000 Metric Tonnes Per Annum (MTPA) under the government’s flagship scheme to promote domestic manufacturing of rare earth magnets.
Bidding Process and Key Timelines
The Central Public Procurement Portal will host the bidding process online. It will use a clear two-stage Least Cost System (LCS) that includes both technical and financial bids.
Key dates include:
- Tender will be available starting March 20, 2026.
- The pre-bid conference will be on April 7, 2026.
- The last day to submit a bid is May 28, 2026.
- The opening of technical bids will be on May 29, 2026.
Prospective applicants can participate to set up integrated facilities and avail benefits under the scheme.
Financial Incentives and Capacity Allocation
The scheme, approved by the Union Cabinet on November 26, 2025 under the leadership of Narendra Modi, has a total financial outlay of ₹7,280 crore.
It includes:
- ₹750 crore as capital subsidy
- ₹6,450 crore as sales-linked incentives
Each chosen beneficiary will get manufacturing capacity in increments of 100 MTPA, ranging from 600 MTPA to 1,200 MTPA.
Also, IREL (India) Limited will give the three lowest bidders a limited supply of NdPr oxide, which will make sure that the raw materials are always available.
Strategic Importance of Rare Earth Magnets
Rare Earth Permanent Magnets are important parts of electric cars, wind turbines, advanced electronics, aerospace, and defence systems. These magnets are some of the strongest on the market and are very important for making clean energy technologies and high-performance applications work.
Reducing Import Dependence and Strengthening Value Chain
The scheme is designed to build a complete domestic value chain from NdPr oxide processing to finished magnet production. By doing so, it aims to reduce India’s reliance on imports and enhance self-reliance in a strategically important sector.
The RFP’s release is a big step toward making India a global center for making rare earth magnets. The initiative is expected to bring in investments, improve the country’s capabilities, and help it reach its goals of becoming a leader in clean energy and advanced manufacturing. This is because it offers strong financial incentives and a structured bidding process.
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