Government Extends Rs 72.8 bn Rare Earth Magnet Scheme Deadline
ECONOMY & POLICY

Government Extends Rs 72.8 bn Rare Earth Magnet Scheme Deadline

The Ministry of Heavy Industries has extended the bid submission deadline for the Rs 72.8 billion (bn) scheme to promote domestic manufacturing of rare earth permanent magnets, setting the new closing date at June 29. The decision followed representations from industry stakeholders seeking additional time to prepare and submit proposals under the global tender process. The ministry said the move aims to widen participation as India pushes to build domestic capacity in critical high?tech materials.

The scheme is designed to develop integrated manufacturing facilities for sintered rare earth permanent magnets, a critical component used in sectors such as electric vehicles, electronics, defence and renewable energy. Bids had originally been scheduled to close on May 28, with technical evaluations to follow. Under the revised timeline, technical bids will be opened on June 30 and responses to bidder queries are expected by June nine.

The initiative was approved with a total outlay of Rs 72.8 billion and includes a capital subsidy component as well as sales?linked incentives to encourage domestic production and reduce reliance on imports of critical materials. The government intends to establish an annual production capacity of 6,000 metric tonnes (t) of rare earth magnets through the scheme. Selected companies are expected to set up integrated manufacturing units across the country.

Industry observers said the extension could improve participation and enhance the quality of bids, particularly in a sector that requires significant capital investment and advanced technological capabilities. The push to develop domestic manufacturing capacity comes amid global supply chain concerns, as rare earth magnets are largely dominated by a few countries and are strategically important for industrial and technological development. The scheme forms part of broader efforts to strengthen India’s position in critical minerals and advanced manufacturing while reducing vulnerability to external supply disruptions.

The Ministry of Heavy Industries has extended the bid submission deadline for the Rs 72.8 billion (bn) scheme to promote domestic manufacturing of rare earth permanent magnets, setting the new closing date at June 29. The decision followed representations from industry stakeholders seeking additional time to prepare and submit proposals under the global tender process. The ministry said the move aims to widen participation as India pushes to build domestic capacity in critical high?tech materials. The scheme is designed to develop integrated manufacturing facilities for sintered rare earth permanent magnets, a critical component used in sectors such as electric vehicles, electronics, defence and renewable energy. Bids had originally been scheduled to close on May 28, with technical evaluations to follow. Under the revised timeline, technical bids will be opened on June 30 and responses to bidder queries are expected by June nine. The initiative was approved with a total outlay of Rs 72.8 billion and includes a capital subsidy component as well as sales?linked incentives to encourage domestic production and reduce reliance on imports of critical materials. The government intends to establish an annual production capacity of 6,000 metric tonnes (t) of rare earth magnets through the scheme. Selected companies are expected to set up integrated manufacturing units across the country. Industry observers said the extension could improve participation and enhance the quality of bids, particularly in a sector that requires significant capital investment and advanced technological capabilities. The push to develop domestic manufacturing capacity comes amid global supply chain concerns, as rare earth magnets are largely dominated by a few countries and are strategically important for industrial and technological development. The scheme forms part of broader efforts to strengthen India’s position in critical minerals and advanced manufacturing while reducing vulnerability to external supply disruptions.

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