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India Invites Bids to Set Up Rare Earth Magnet Plants Under INR 7,280 Crore Scheme

The scheme, approved by the Union Cabinet chaired by Narendra Modi in November 2025, has a total outlay of INR 7,280 crore and aims to build domestic capacity in rare earth magnet production.

March 23, 2026. By Abha Rustagi

The Ministry of Heavy Industries has issued a request for proposal (RFP) to select companies for setting up integrated sintered NdFeB rare earth permanent magnet (REPM) manufacturing facilities with a total capacity of 6,000 metric tonnes per annum.

The bidding process allows applicants to seek capital subsidies and sales-linked incentives under the government’s scheme to promote domestic manufacturing of rare earth magnets.

Bids will be submitted through a two-stage process: technical and financial, on the Central Public Procurement Portal using a least cost system, the ministry said.

Tender documents are available from March 20, while a pre-bid meeting is scheduled for April 7. The deadline for bid submission is May 28, and technical bids will be opened on May 29.

The scheme, approved by the Union Cabinet chaired by Narendra Modi in November 2025, has a total outlay of 72.8 billion rupees and aims to build domestic capacity in rare earth magnet production.

Under the plan, selected companies will be allocated capacities ranging from 600 to 1,200 tonnes per annum. The scheme includes a capital subsidy of INR 750 crore and sales-linked incentives of INR 6,450 crore.

It also provides a limited assured supply of NdPr oxide from IREL (India) Ltd. to the three lowest bidders.

Rare earth permanent magnets are used in electric vehicles, wind turbines, electronics, aerospace and defence systems. The government aims to develop a complete domestic value chain from raw materials to finished magnets to reduce import dependence.

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