Centre Extends Rs 72.8 Billion Rare Earth Magnet Tender

30 Jun 2026 CW Team

The scheme has a financial outlay of Rs 72.8 billion, comprising a Rs 7.5 billion capital subsidy and Rs 64.5 billion in sales-linked incentives over five years. Eligible manufacturers can claim incentives of up to 40 per cent of eligible net sales, while the three lowest bidders will receive limited assured supplies of Neodymium-Praseodymium (NdPr) oxide from state-owned IREL (India) Ltd. The government plans to select up to five beneficiaries with capacities ranging from 600 tonnes per annum (t) to 1,200 t to build an overall domestic manufacturing capacity of 6,000 t.

Industry executives say technology remains the principal hurdle rather than machinery procurement. Sintered Neodymium-Iron-Boron (NdFeB) magnets require specialised powder metallurgy, including alloy preparation, micron-level powder production, oxygen-controlled processing, vacuum sintering and precision heat treatment. Those manufacturing processes are protected intellectual property largely held by a handful of global players, making credible technology partnerships essential to produce magnets that meet demanding quality standards and to clear customer qualification cycles that can take between 12 and 24 months.

Feedstock security is also prompting caution among potential investors. Although limited assured supplies of NdPr oxide are on offer, access to heavy rare earths such as dysprosium and terbium for high-performance magnets remains concentrated globally, exposing manufacturers to geopolitical risk. Industry observers said the one-month extension reflected companies taking additional time to address technology access, raw material security and execution risks before committing to one of India’s most ambitious manufacturing programmes.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Centre has extended a rare earth permanent magnet tender by one-month as companies seek extra time to firm up technology access and feedstock plans. The extension comes as the government seeks to localise magnet production to support electric vehicle traction motors and reduce dependence on imports. The move follows approval of a manufacturing programme designed to build domestic capability in a component deemed critical across multiple sectors. The scheme has a financial outlay of Rs 72.8 billion, comprising a Rs 7.5 billion capital subsidy and Rs 64.5 billion in sales-linked incentives over five years. Eligible manufacturers can claim incentives of up to 40 per cent of eligible net sales, while the three lowest bidders will receive limited assured supplies of Neodymium-Praseodymium (NdPr) oxide from state-owned IREL (India) Ltd. The government plans to select up to five beneficiaries with capacities ranging from 600 tonnes per annum (t) to 1,200 t to build an overall domestic manufacturing capacity of 6,000 t. Industry executives say technology remains the principal hurdle rather than machinery procurement. Sintered Neodymium-Iron-Boron (NdFeB) magnets require specialised powder metallurgy, including alloy preparation, micron-level powder production, oxygen-controlled processing, vacuum sintering and precision heat treatment. Those manufacturing processes are protected intellectual property largely held by a handful of global players, making credible technology partnerships essential to produce magnets that meet demanding quality standards and to clear customer qualification cycles that can take between 12 and 24 months. Feedstock security is also prompting caution among potential investors. Although limited assured supplies of NdPr oxide are on offer, access to heavy rare earths such as dysprosium and terbium for high-performance magnets remains concentrated globally, exposing manufacturers to geopolitical risk. Industry observers said the one-month extension reflected companies taking additional time to address technology access, raw material security and execution risks before committing to one of India’s most ambitious manufacturing programmes.

Infrastructure Transport

30 Jun 2026

The Risk of Negative Bids

The phenomenon of negative bidding in India's roads sector has moved from being an occasional occurrence to an industry-wide concern. With contractors increasingly quoting significantly below project estimates to secure orders, questions are being raised over project viability, execution quality and the long-term sustainability of the contracting ecosystem.These concerns formed the core of a high-level industry roundtable organised by CW, where senior industry leaders deliberated on the reasons behind the trend, its implications and the reforms needed to restore discipline and sustainability i..

Technology

30 Jun 2026

Building Faster, Cleaner and More Profitably

The First Construction Council (FCC), in association with CW magazine and supported by Autodesk as the Presenting Partner, recently convened an exclusive CXO roundtable titled “Building Faster, Cleaner and More Profitably: The Growth Playbook for Construction Leaders.”Held as part of a multi-city dialogue series spanning Mumbai, Bengaluru and Delhi, the roundtable brought together senior industry leaders to deliberate on the challenges and opportunities shaping India's construction and real-estate sectors...To read the full article Click Here ..

Real Estate

30 Jun 2026

NICMAR’s campus is a live lesson in construction methodology

At NICMAR University, architecture becomes a live lesson in construction innovation. Pankaj Nande, Principal Architect, TDC Architecture and Design, explains how Alumil’s fenestration systems helped turn a precast campus vision into a functional, durable and future-facing learning environment for the next generation of builders.Please take us through your journey as an architect and some of the projects you have worked on.I am the founder of TDC- Architecture & Design, Pune. Our journey started with the thought of doing justice not only to design, but also to construction methodology, te..