India Launches ₹7,280 Crore Scheme to Build Domestic Rare Earth Magnet Manufacturing Capacity

The Ministry of Heavy Industries (MHI) took a significant step toward reducing India's dependence on imported rare earth permanent magnets, hosting a pre-bid conference in New Delhi on Tuesday for its 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets.'

The conference, held at India Habitat Centre, drew participation from at least 25 companies. Officials presented the scheme's contours, key provisions of the Request for Proposal (RFP), and the procedural framework of the bidding process. Prospective bidders were informed that queries may be submitted via email until April 22, 2026, as per details outlined in the RFP.

The government had issued the RFP on March 20, 2026, inviting bids to establish integrated NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities with a total capacity of 6,000 metric tonnes per annum (MTPA). The scheme carries a total outlay of ₹7,280 crore.

Under the selection process, the government will choose a maximum of five entities, each setting up facilities of up to 1,200 MTPA. Bidding will be conducted online through a two-cover system — comprising a Technical Bid and a Financial Bid — under the Least Cost System (LCS) mechanism via the CPP Portal. The bid submission deadline is May 28, 2026.

REPMs are considered critical components in electric vehicles, renewable energy systems, consumer electronics, aerospace, and defence applications. The scheme envisions fully integrated manufacturing, spanning the conversion of rare earth oxides to metals, metals to alloys, and alloys into finished magnets.

Officials indicated the scheme is aimed at strengthening domestic manufacturing capabilities and building a globally competitive REPM ecosystem within India.