Centre Invites Bids For Rare Earth Magnet Unit Under Rs 72.8 bn Scheme

26 Mar 2026 CW Team

Tender documents were made available from March 20, with a pre-bid meeting scheduled for seven April and bid submissions closing on May 28; technical bids are slated to be opened on May 29. Each manufacturing unit is expected to be allocated a capacity between 600 and 1,200 metric tonnes per annum (t), and applicants must propose integrated sintered NdFeB production lines. The ministry set out timelines and compliance requirements in the RFP and advised bidders to use the portal for both stages.

The move follows the Union Cabinet's approval in November 2025 of a Rs 72.8 billion (bn) scheme to promote domestic manufacturing of sintered rare earth magnets and reduce import dependence. Under the scheme the ministry said companies will be eligible for a capital subsidy of Rs 7.5 billion (bn) and a sales-linked incentive of Rs 64.5 billion (bn), with limited assured supply of NdPr oxide from IREL (India) Ltd for the three lowest bidders. The support is aimed at developing end-to-end capacity in the magnet value chain.

Rare earth permanent magnets are high-strength components used in electric vehicles, wind turbines, high-end electronics and aerospace and defence systems, and are critical to advanced manufacturing. India holds six point twenty seven per cent of global rare earth reserves but accounts for zero point eighty three per cent of production, leaving the country heavily dependent on imports, according to industry reporting. The government framed the push after China, which supplies around 68.6 per cent of global production, restricted exports of several rare earth elements and related magnets last year.

The Ministry of Heavy Industries has issued a request for proposal to invite bids to establish domestic manufacturing facilities for rare earth permanent magnets, advancing India's push for a self-reliant supply chain in critical minerals. The RFP calls for integrated Sintered Neodymium-iron-boron (NdFeB) Rare Earth Permanent Magnet units, with a total capacity of 6,000 metric tonnes per annum (t). The ministry indicated the bidding will be conducted online through a two-stage technical and financial process on the central public procurement portal. Tender documents were made available from March 20, with a pre-bid meeting scheduled for seven April and bid submissions closing on May 28; technical bids are slated to be opened on May 29. Each manufacturing unit is expected to be allocated a capacity between 600 and 1,200 metric tonnes per annum (t), and applicants must propose integrated sintered NdFeB production lines. The ministry set out timelines and compliance requirements in the RFP and advised bidders to use the portal for both stages. The move follows the Union Cabinet's approval in November 2025 of a Rs 72.8 billion (bn) scheme to promote domestic manufacturing of sintered rare earth magnets and reduce import dependence. Under the scheme the ministry said companies will be eligible for a capital subsidy of Rs 7.5 billion (bn) and a sales-linked incentive of Rs 64.5 billion (bn), with limited assured supply of NdPr oxide from IREL (India) Ltd for the three lowest bidders. The support is aimed at developing end-to-end capacity in the magnet value chain. Rare earth permanent magnets are high-strength components used in electric vehicles, wind turbines, high-end electronics and aerospace and defence systems, and are critical to advanced manufacturing. India holds six point twenty seven per cent of global rare earth reserves but accounts for zero point eighty three per cent of production, leaving the country heavily dependent on imports, according to industry reporting. The government framed the push after China, which supplies around 68.6 per cent of global production, restricted exports of several rare earth elements and related magnets last year.

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