India Launches Bid for Rare Earth Magnet Manufacturing Facilities
Synopsis
The Indian government has initiated a significant move to boost domestic manufacturing of Rare Earth Permanent Magnets by releasing an RFP for the establishment of integrated production facilities. This endeavor aims to enhance self-reliance and solidify India's position in the global market.
Key Takeaways
RFP issued for manufacturing facilities Target capacity of 6,000 MTPA Financial support includes Rs 750 crore subsidy Focus on reducing import dependency Critical for electric vehicles and defense
New Delhi, March 20 (NationPress) The Ministry of Heavy Industries has released a Request for Proposal (RFP) aimed at identifying beneficiaries for establishing integrated sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities, as reported on Friday.
These manufacturing units are expected to achieve a combined capacity of 6,000 Metric Tonnes Per Annum (MTPA) through the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet, as detailed in the announcement.
Approved by the Union Cabinet in November 2025, with a financial provision of Rs 7,280 crore, the initiative allocates 600–1,200 MTPA (in increments of 100 MTPA) to each selected beneficiary.
Moreover, it offers a capital subsidy of Rs 750 crore along with sales-linked incentives totaling Rs 6,450 crore, ensuring a limited assured supply of NdPr oxide from IREL (India) Ltd. for the three lowest bidders.
During this bidding process, interested applicants can submit proposals to set up integrated sintered NdFeB REPM manufacturing facilities across India and may qualify for capital subsidies and sales-linked incentives under the Scheme.
The bidding will take place online via a transparent Least Cost System (LCS) that includes two stages: Technical Bid and Financial Bid, facilitated through the Central Public Procurement (CPP) Portal, as indicated in the announcement.
Tender documents will be accessible starting March 20, 2026, with a pre-bid conference scheduled for April 7, 2026. Bids must be submitted by May 28, 2026, and technical bids will be reviewed on May 29, 2026, the statement added.
This pioneering scheme aims to create a total capacity of 6,000 Metric Tonnes per Annum (MTPA) for integrated Rare Earth Permanent Magnet manufacturing facilities in India, thereby promoting self-reliance and positioning India as a significant player in the global REPM market, as noted in the statement.
Rare Earth Permanent Magnets are considered some of the most powerful magnets globally, extensively utilized in sectors such as electric vehicles, wind turbines, high-end electronics, aerospace, and defense systems.
By establishing a complete value chain from NdPr oxide to finished magnets within India, this scheme is projected to greatly diminish reliance on imports in this sector.
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Point of View
This initiative represents a strategic effort to enhance India's self-reliance in critical technologies. By promoting local manufacturing of Rare Earth Permanent Magnets, India aims to decrease its dependency on imports and strengthen its position in the global supply chain.
NationPress
8 Jul 2026
Frequently Asked Questions
What is the purpose of the RFP issued by the Ministry of Heavy Industries?
The RFP is aimed at selecting beneficiaries to establish integrated sintered NdFeB Rare Earth Permanent Magnet manufacturing facilities in India.
What is the total capacity targeted by the government under this scheme?
The scheme aims to establish a total capacity of 6,000 Metric Tonnes Per Annum (MTPA) for the manufacturing facilities.
What financial support is provided to the selected beneficiaries?
Selected beneficiaries will receive a capital subsidy of Rs 750 crore and sales-linked incentives amounting to Rs 6,450 crore.
When is the deadline for submitting bids?
Bids must be submitted by May 28, 2026.
Why are Rare Earth Permanent Magnets important?
They are vital for various applications, including electric vehicles, wind turbines, electronics, and defense systems.
