The government received 20 bids, including from Larsen & Toubro and Coal India, for the Rs 72.8 billion (Rs 72.8 bn) scheme to promote manufacturing of sintered Rare Earth Permanent Magnet (REPM), the Ministry of Heavy Industries said. The Union Cabinet had approved the scheme in November with the same financial outlay and the last date for submitting bids was August 12, with technical bids opened on Thursday. The scheme is intended to strengthen domestic supply chains for electric vehicles, wind energy, electronics and defence.

The first-of-its-kind initiative aims to set up a total capacity of 6,000 metric tonnes per annum (MTPA) for integrated REPM manufacturing facilities in India. The ministry said the tender attracted bidders from manufacturers, recyclers and international suppliers, including 20 Microns, Attero Recycling, NEO Performance Materials (Singapore), Proterial (India) and Renew Private Limited among others. The diversity of bidders is expected to encourage competition and technology transfer in a strategic value chain.

The scheme envisages allocating the total capacity to five beneficiaries through a global competitive bidding process with each beneficiary allotted up to 1,200 MTPA. The total duration will be seven years from the date of award, including a two-year gestation period for setting up an integrated REPM manufacturing facility and five years for incentive disbursement on the sale of REPM. Incentives will be linked to sales to accelerate commercial production and reduce upfront financial risk.

REPM are used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems, and domestic production is intended to reduce import dependence in these sectors. The ministry indicated that fostering indigenous capabilities in REPM production will secure the supply chain for domestic industries and support the nation’s Net Zero 2070 commitment. Officials expect the scheme to catalyse further investments in critical materials and downstream manufacturing.