Heavy Industries Ministry Receives 20 Bids for Rs 7,280 Crore Rare Earth Magnet Scheme

The Ministry of Heavy Industries announced that it has received 20 bids under its Rs 7,280 crore "Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM)" to establish domestic manufacturing capabilities for critical automotive and industrial components.

The technical bids were opened following a global tender floated on March 20, 2026, aimed at creating a total capacity of 6,000 Metric Tons Per Annum (MTPA) across five selected beneficiaries, with each allocated up to 1,200 MTPA. The scheme spans a seven-year duration, including a two-year gestation period for plant setup and five years of sales-linked incentive disbursements.

Sintered rare earth permanent magnets are components in electric vehicle traction motors, wind turbines, defense electronics, and aerospace systems. By establishing an end-to-end domestic value chain from raw materials to finished magnets, the initiative aims to reduce import dependencies and secure the supply chain for India's growing electric vehicle and clean technology sectors.