India Invites Global Bids for Rare Earth Magnet Plants Under ₹7,280 Crore Scheme

New Delhi, March 20, 2026: Ministry of Heavy Industries has invited global bids for setting up integrated manufacturing facilities for Sintered NdFeB Rare Earth Permanent Magnets (REPM) in India. The move is part of the government’s ambitious scheme aimed at boosting domestic production and reducing import dependence in critical technologies.

The Request for Proposal (RFP) was released on March 20, 2026, opening the door for domestic and international players to participate in establishing manufacturing capacity of 6,000 metric tonnes per annum (MTPA).

Transparent Global Tender Process Announced

The bidding process will be conducted online through the Central Public Procurement Portal using a Least Cost System (LCS). It will follow a two-stage process, including:

• Technical Bid evaluation

• Financial Bid evaluation

This transparent mechanism aims to ensure fair competition and efficient allocation of incentives under the scheme.

Key Dates for the Tender

• Tender release date: March 20, 2026

• Pre-bid meeting: April 7, 2026

• Last date for bid submission: May 28, 2026

• Technical bid opening: May 29, 2026

Scheme Backed by ₹7,280 Crore Government Support

The initiative is part of a scheme approved by the Union Cabinet on November 26, 2025, under the leadership of Narendra Modi.

The scheme has a total financial outlay of ₹7,280 crore, which includes:

• ₹750 crore capital subsidy

• ₹6,450 crore sales-linked incentives

Each selected beneficiary will be allocated manufacturing capacity ranging from 600 to 1,200 MTPA, ensuring distributed development across multiple players.

Strategic Push for Self-Reliance in Critical Minerals

Rare Earth Permanent Magnets are critical components used in:

• Electric vehicles (EVs)

• Wind turbines

• Consumer electronics

• Aerospace and defence systems

Currently, India relies heavily on imports for these materials. By developing a complete domestic value chain from NdPr oxide to finished magnets, the government aims to strengthen self-reliance in this strategically important sector.

The scheme also includes provisions for assured supply of NdPr oxide from IREL (India) Limited for the three lowest bidders, ensuring raw material availability.

Boost to India’s Manufacturing and Clean Energy Goals

This initiative aligns with India’s broader vision of becoming a global manufacturing hub while supporting the transition to clean energy technologies.

By encouraging investment in rare earth magnet production, the government aims to:

• Reduce dependency on imports

• Strengthen supply chains for EVs and renewable energy

• Position India as a global player in advanced materials

Conclusion

The global tender marks a significant step in India’s efforts to build a robust ecosystem for rare earth magnet manufacturing. With strong financial incentives and policy support, the scheme is expected to attract major investments and accelerate the country’s journey toward technological self-reliance.