The Ministry of Heavy Industries has released a Request for Proposal (RFP) to select beneficiaries for establishing integrated manufacturing facilities for sintered NdFeB rare earth permanent magnets (REPM) in India. The total planned capacity under the scheme is 6,000 metric tonnes per annum (MTPA).

Online Bidding Through Two-Stage Process

The bidding process will be conducted online through the Central Public Procurement (CPP) Portal. It will follow a two-stage structure, including a technical bid and a financial bid, under a Least Cost System (LCS).

The tender documents are available from March 20, 2026. A pre-bid conference is scheduled for April 7, 2026. The last date for submission of bids is May 28, 2026, and technical bids will be opened on May 29, 2026.

Scheme Details and Financial Structure

The scheme was approved by the Union Cabinet on November 26, 2025, with a total financial outlay of ₹7,280 crore. It aims to support domestic manufacturing of sintered rare earth permanent magnets.

Under the scheme, selected applicants can receive capital subsidy and sales-linked incentives. The total capital subsidy is ₹750 crore, while ₹6,450 crore is allocated for sales-linked incentives.

Each selected entity will be assigned manufacturing capacity between 600 MTPA and 1,200 MTPA.

Raw Material Support and Allocation

The scheme includes provision for limited assured supply of NdPr oxide from IREL (India) Ltd. This supply will be available to the three lowest bidders selected through the process.

Use Cases and Industry Relevance

Rare earth permanent magnets are used in electric vehicles, wind turbines, electronics, aerospace, and defence equipment. The scheme aims to develop domestic manufacturing capability across the value chain, from raw material processing to finished magnet production.

Objective of the Scheme

The initiative is intended to support local manufacturing and reduce dependence on imports in the rare earth magnet segment. It also seeks to create capacity within the country for producing these components used in multiple industrial applications.