The Ministry of Heavy Industries (MHI) has received 20 bids under its scheme to promote manufacturing of sintered rare earth permanent magnets (REPM), marking a significant step towards establishing an indigenous manufacturing ecosystem for the strategic material.
The bids were submitted through a global tender floated on the Central Public Procurement (CPP) portal for selecting manufacturers to establish integrated sintered neodymium-iron-boron (NdFeB) rare earth permanent magnet manufacturing facilities in India. The technical bids were opened on Thursday in the presence of the bidders at the Ministry of Heavy Industries.
The bidders include 20 Microns Limited, Attero Recycling Private Limited, Coal India Limited, Larsen & Toubro Limited, Lohum Magnets & Energy Solutions Private Limited, NEO Performance Materials (Singapore) PTE. LTD., Proterial (India) Limited, Prozeal Green Energy Limited, Renew Private Limited and Shankaranarayana Constructions Limited, among others.
The initiative follows the Union Cabinet’s approval in November 2025 of the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) with a financial outlay of Rs 7,280 crore. The scheme was notified by MHI in December 2025.
The Request for Proposal (RFP) was issued on the CPP portal on March 20, 2026, followed by a pre-bid conference on April 7. The deadline for submission of bids was August 12, while the technical bids were opened on August 13.
Scheme targets 6,000 MTPA manufacturing capacity
The first-of-its-kind scheme aims to establish an integrated REPM manufacturing capacity of 6,000 metric tonnes per annum (MTPA) in India. The capacity will be allocated among five beneficiaries selected through global competitive bidding, with each beneficiary eligible for up to 1,200 MTPA.
The scheme will run for seven years from the date of award. This includes a two-year gestation period for establishing the integrated manufacturing facilities and five years during which incentives will be provided based on the sale of REPMs.
Rare earth permanent magnets, particularly NdFeB magnets, are among the most powerful permanent magnets and are critical components in several advanced industries. They are widely used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems.
The government expects the scheme to help develop a complete domestic value chain, from Neodymium-praseodymium (NdPr) oxide to finished permanent magnets, thereby reducing India’s dependence on imports and strengthening supply-chain security for strategic industries.
The initiative is also aimed at enhancing India’s competitiveness in the global REPM market while supporting domestic manufacturing and technological self-reliance.
The Ministry said the scheme is expected to strengthen India’s industrial base, secure supplies for domestic industries and contribute to the country’s Net Zero 2070 commitment. The initiative is part of the broader vision of building a technologically self-reliant and globally competitive manufacturing ecosystem under Viksit Bharat @2047.
