₹7,280-Crore Rare Earth Magnet Scheme Draws Strong Industry Response; 25 Firms Join Pre-Bid Meet

In a significant push towards strengthening India's critical mineral supply chains and clean energy manufacturing ecosystem, the Ministry of Heavy Industries (MHI) has witnessed robust industry interest in its ₹7,280-crore Production Scheme for Sintered Rare Earth Permanent Magnets (REPMs), with at least 25 companies participating in the pre-bid conference held in New Delhi.

The conference, organised at India Habitat Centre, marks a key milestone in India's efforts to build domestic capabilities in one of the most strategically important components for emerging technologies.

Strategic Sector with Global Relevance

Rare Earth Permanent Magnets (REPMs) are among the most powerful magnets and form the backbone of several high-growth sectors, including:

• Electric Vehicles (EVs)

• Wind energy and renewable power systems

• Consumer electronics and semiconductors

• Aerospace and defence technologies

Globally, the REPM supply chain is highly concentrated, making India's move to develop domestic manufacturing capacity a strategic intervention aimed at reducing import dependence and enhancing supply chain resilience.

Strong Industry Participation Signals Investor Confidence

The participation of over 25 companies at the pre-bid stage indicates strong investor confidence in the government's policy framework and incentives.

Officials from MHI conducted a detailed presentation outlining:

• Scheme design and objectives

• Key provisions of the Request for Proposal (RFP), released on March 20, 2026

• Technical, financial, and procedural requirements for bidders

Industry queries were addressed during the session, with stakeholders invited to submit further clarifications via email until April 22, 2026.

Transparent, Competitive Bidding Process

The government has designed a two-stage online bidding process under the Least Cost System (LCS) mechanism, to be conducted through the Central Public Procurement (CPP) Portal.

Key timelines include:

• Last date for bid submission: May 28, 2026

• Selection based on technical qualification and cost competitiveness

The scheme will select up to five companies, each eligible to establish manufacturing facilities with a capacity of up to 1,200 metric tonnes per annum (MTPA), resulting in a total planned capacity of 6,000 MTPA.

Building an Integrated Manufacturing Ecosystem

Unlike conventional incentive schemes, the REPM initiative emphasises end-to-end integration across the value chain, covering:

• Conversion of rare earth oxides into metals

• Processing of metals into alloys

• Manufacturing of finished sintered permanent magnets

This integrated approach is expected to significantly enhance value addition within India and reduce reliance on imported intermediate materials.

Aligning with India's Clean Energy and Industrial Goals

The scheme comes at a time when India is accelerating its transition towards:

• Electric mobility under its EV adoption roadmap

• Renewable energy expansion, particularly wind and solar

• Advanced manufacturing under the "Make in India" initiative

By securing domestic production of REPMs, the government aims to ensure stable supply for critical industries, while also positioning India as a potential global hub for magnet manufacturing.

Economic and Strategic Impact

Experts note that the development of a domestic REPM ecosystem could:

• Reduce vulnerability to global supply disruptions

• Lower input costs for EV and renewable energy manufacturers

• Boost high-value manufacturing and exports

• Strengthen India's position in critical and emerging technologies

Way Forward

With strong initial industry participation and a structured bidding framework in place, the scheme is expected to move swiftly toward implementation.

The Ministry of Heavy Industries emphasized that the initiative will play a transformational role in building a globally competitive rare earth magnet manufacturing ecosystem, supporting both economic growth and strategic autonomy.