India Launches Bidding for Advanced Magnet Manufacturing Initiative
The Ministry of Heavy Industries has initiated a significant step toward bolstering India’s manufacturing capabilities with the release of a Request for Proposal (RFP) for integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities. This initiative aims to establish production capacities of 6,000 Metric Tonnes Per Annum (MTPA) under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet.
This RFP invites prospective applicants to submit bids for developing these manufacturing facilities in India. Bidders can qualify for a capital subsidy and sales-linked incentives as part of the scheme, which represents a crucial move to enhance India’s capabilities in this advanced technology sector. The bidding process will be conducted transparently online, utilizing a Least Cost System (LCS) that includes two stages: Technical Bid and Financial Bid, through the Central Public Procurement (CPP) Portal.
Key Dates and Financial Support
The tender documents for this project will be available starting March 20, 2026. A pre-bid conference is scheduled for April 7, 2026, and the bid submission deadline is set for May 28, 2026. Technical bids will be opened the following day, on May 29, 2026.
This initiative received the green light from the Union Cabinet, led by Prime Minister Shri Narendra Modi, on November 26, 2025, with a robust financial provision of ₹7,280 crore. This pioneering scheme is positioned to create a notable production capacity of 6,000 MTPA for integrated Rare Earth Permanent Magnet manufacturing in India, elevating the country’s self-reliance and enhancing its role in the global REPM market.
Benefits and Implications
Under the scheme, selected beneficiaries will receive allocations ranging from 600 MTPA to 1,200 MTPA, in increments of 100 MTPA. The financial support includes a capital subsidy of ₹750 crore and a substantial sales-linked incentive totaling ₹6,450 crore, which aims to create a competitive environment for the three lowest bidders by guaranteeing a limited supply of NdPr oxide from IREL (India) Ltd.
Rare Earth Permanent Magnets are recognized globally as the most potent magnets, extensively utilized in electric vehicles, wind turbines, cutting-edge electronics, as well as in aerospace and defence applications. By fostering a complete supply chain from NdPr oxide to the final product, this scheme intends to significantly diminish India’s current reliance on imports in this critical sector.
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