The Ministry of Heavy Industries has issued a request for proposal to select beneficiaries to establish integrated sintered rare earth permanent magnet manufacturing facilities with capacity of 6,000 Metric tonnes per annum (MTPA). The global tender invites bids for projects eligible for capital subsidy and sales-linked incentives under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet. The bidding will be conducted online through a transparent least cost system in a two-stage technical and financial process on the Central Public Procurement portal.

Tender documents were published on 20 March 2026 and a pre-bid conference has been scheduled for seven April 2026, with bids due on 28 May 2026 and technical bids to be opened on 29 May 2026. The Union Cabinet approved the scheme on 26 November 2025 with a financial outlay of Rs 72.8 billion (bn). The initiative aims to establish a total integrated manufacturing capacity of 6,000 MTPA to enhance self-reliance and position India within the global rare earth permanent magnet market.

Under the scheme each beneficiary will be allocated capacity between 600 MTPA and 1,200 MTPA in multiples of 100 MTPA. The scheme provides a capital subsidy of Rs 7.5 bn and a sales-linked incentive of Rs 64.5 bn. The programme includes limited assured supply of neodymium-praseodymium oxide (NdPr oxide) from IREL (India) Limited for the three lowest bidders to support initial feedstock requirements. Applicants will be assessed against technical and financial criteria in the two-stage process.

Rare earth permanent magnets are widely used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems and demand is expected to rise as these sectors expand. By developing the full value chain from NdPr oxide to finished magnets in India the scheme is expected to reduce import dependence and strengthen domestic industrial capacity. Prospective applicants are invited to submit bids through the Central Public Procurement portal in accordance with the tender documents and the least cost system.