The Ministry of Heavy Industries (MHI) issued a Request for Proposal (RFP) to select beneficiaries for establishing integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities in India. The initiative aims to build a total production capacity of 6,000 metric tons per annum (MTPA) under the government’s Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet. Through the global tender, the government seeks to strengthen domestic manufacturing capabilities and position India as a major global supplier of rare earth permanent magnets.
Global Tender to Encourage Domestic Manufacturing
Under the bidding process, eligible companies can submit proposals to set up integrated sintered NdFeB REPM manufacturing plants in India. Successful applicants will qualify for capital subsidies and sales-linked incentives provided under the scheme.
The bidding process will be conducted online through the Central Public Procurement (CPP) Portal using a transparent Least Cost System (LCS). The process will involve two stages—Technical Bid and Financial Bid—to ensure fair and competitive selection of project developers.
Government Approves ₹7,280 Crore Incentive Scheme
The initiative follows the government’s approval on November 26, 2025, for the Scheme to promote manufacturing of Sintered Rare Earth Permanent Magnets. The scheme has a total financial outlay of ₹7,280 crore and represents a first-of-its-kind policy initiative in India aimed at establishing a robust domestic rare earth magnet manufacturing ecosystem. Each selected beneficiary will be allocated manufacturing capacity between 600 MTPA and 1,200 MTPA, in multiples of 100 MTPA. In addition, the three lowest bidders will receive assured supply of NdPr oxide from IREL (India) Ltd., which will support stable raw material availability.
Strategic Importance of Rare Earth Permanent Magnets
Sintered NdFeB rare earth permanent magnets are among the most powerful magnets available today and play a crucial role in several advanced technologies. They are widely used in electric vehicles (EVs), wind turbines, high-end electronics, aerospace systems, and defence equipment.
Currently, global supply chains for these magnets are highly concentrated, making supply security a strategic priority for many countries. By promoting domestic production and building a complete value chain—from NdPr oxide to finished magnets—India aims to significantly reduce import dependence while strengthening its position in the global rare earth magnet market.
Boosting India’s Position in the Global Supply Chain
Through this scheme, the government intends to create a fully integrated rare earth magnet manufacturing ecosystem in India. The initiative will support the growth of electric mobility, renewable energy, and advanced electronics industries, all of which depend heavily on rare earth magnet technology.
Moreover, the programme aligns with India’s broader Atmanirbhar Bharat (self-reliance) vision, encouraging domestic manufacturing while attracting global investments into strategic sectors. As reported by pib.gov.in, by establishing a strong manufacturing base for NdFeB rare earth permanent magnets, India aims to become a key global hub for advanced magnet production and supply in the coming years.
