India Advances Sintered Rare Earth Magnet Manufacturing Initiative
The Ministry of Heavy Industries (MHI) has received 20 bids via a global tender on the Central Public Procurement (CPP) portal for selecting manufacturers to establish integrated facilities for Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing. This significant move is part of the government’s ambitious ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet.’
On November 26, 2025, Prime Minister Shri Narendra Modi led the Union Cabinet in approving this scheme, which comes with a substantial financial backing of ₹7,280 crores. The official notification for the scheme was issued by the MHI on December 15, 2025, setting the stage for the competitive bidding process.
The Request for Proposal (RFP) was launched on March 20, 2026, with a pre-bid conference held shortly after on April 7, 2026. Bidders had until August 12, 2026, to submit their proposals, and the technical bids were opened the following day in the presence of the participants at the MHI.
Building India’s REPM Manufacturing Capacity
This pioneering scheme aims to create an integrated manufacturing capacity of 6,000 Metric Tons Per Annum (MTPA) of Rare Earth Permanent Magnets in India. By doing so, it seeks to enhance the country’s self-reliance while positioning India as a formidable player in the global REPM market. The scheme will allocate this total capacity among five beneficiaries, with each receiving up to 1,200 MTPA through a competitive bidding process.
The implementation timeframe for the scheme spans seven years from the award date, which includes a two-year period for setting up the integrated manufacturing facilities, followed by five years dedicated to disbursing incentives based on REPM sales.
Significance of Rare Earth Permanent Magnets
Rare Earth Permanent Magnets are renowned for their powerful magnetic properties and play a critical role in various industries, ranging from electric vehicles and wind turbines to advanced electronics and aerospace sectors. The establishment of a robust value chain, from processing NdPr oxide to producing finished magnets within India, is expected to significantly reduce import reliance in this vital sector.
This initiative marks a historic step for the Indian government in strengthening the domestic ecosystem for REPM manufacturing, enhancing the nation’s competitiveness in global markets. By nurturing indigenous capabilities in REPM production, the scheme promises not only to stabilize the supply chain for domestic industries but also to contribute to India’s ambition of achieving net-zero emissions by 2070. This endeavor aligns with the broader goal of a self-reliant, technologically advanced, and sustainable industrial base, in line with the vision of Viksit Bharat @2047.
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