MHI Invites Bids to Develop 6,000 MTPA Sintered Rare Earth Permanent Magnet Manufacturing Facilities
The Ministry of Heavy Industries has issued a Request for Proposal (RFP) to set up 6,000 MTPA integrated rare earth permanent magnet manufacturing capacity under an INR 7,280 crore incentive scheme aimed at boosting domestic production and reducing import dependence.
March 20, 2026. By Mrinmoy Dey
Prospective applicants can submit their bids to establish integrated sintered NdFeB REPM manufacturing facilities in India and can be eligible to avail capital subsidy as well as sales-linked incentives under the Scheme. The bidding will be conducted online through a transparent Least Cost System (LCS) comprising two stages (Technical Bid and Financial Bid) through the Central Public Procurement (CPP) Portal, stated MHI.
Pre-bid conference shall be held on April 7, 2026. The last date for submission of bids is May 28, 2026. The techno-commercial bids will be opened on May 29, 2026.
In November 2025, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet with a financial outlay of INR 7,280 crore.
The Scheme is a first-of-its-kind initiative that aims to establish a total capacity of 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet manufacturing facilities in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market, MHI said.
Under the Scheme, each beneficiary will be allocated a capacity ranging between 600 MTPA and 1,200 MTPA (in multiples of 100 MTPA). The Scheme provides a capital subsidy of INR 750 crore and a sales-linked incentive of INR 6,450 crore, with a limited assured supply of NdPr oxide from IREL (India) for the three lowest bidders.
Rare Earth Permanent Magnets are among the most powerful magnets in the world and are widely used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems. By building a complete value chain from NdPr oxide to finished magnets in India, the Scheme is expected to significantly reduce import dependence in this sector, MHI stated.
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