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MHI Receives 20 Bids Under INR 7,280 Crore REPM Manufacturing Scheme

The Ministry of Heavy Industries has received 20 bids, including Coal India, L&T, ReNew, Prozeal Green Energy and Attero Recycling, under its REPM manufacturing scheme, with five manufacturers to be eventually selected to establish a combined 6,000 MTPA of integrated sintered NdFeB magnet capacity.

August 14, 2026. By Mrinmoy Dey

The Ministry of Heavy Industries (MHI) has announced that it has received 20 bids under its scheme to promote manufacturing of sintered NdFeB rare earth permanent magnets. The government aims to establish a domestic ecosystem for the manufacturing of rare earth permanent magnets (REPMs) through this scheme.

The bids were submitted through a global tender floated on the Central Public Procurement (CPP) Portal for selecting manufacturers to establish integrated sintered NdFeB REPM manufacturing facilities in India. The technical bids were opened on August 13, 2026, following the August 12 bid submission deadline.

The participating companies include 20 Microns, Attero Recycling, Coal India, Larsen & Toubro, Lohum Magnets & Energy Solutions, NEO Performance Materials, Prozeal Green Energy, Proterial India, ReNew, Solpro Greentech and others, along with several joint ventures and consortiums.

The initiative follows the Union Cabinet’s approval on November 26, 2025, of the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet, with a total financial outlay of INR 7,280 crore. MHI subsequently notified the scheme on December 15, 2025, while the Request for Proposal was floated on March 20, 2026.

The scheme aims to establish an integrated REPM manufacturing capacity of 6,000 metric tonnes per annum (MTPA) in India. The capacity will be allocated to five beneficiaries through global competitive bidding, with each beneficiary eligible for up to 1,200 MTPA.

The scheme will run for seven years from the date of award, comprising a two-year gestation period for establishing integrated manufacturing facilities followed by five years of incentive disbursement linked to REPM sales.

Rare earth permanent magnets, particularly NdFeB magnets, are critical components used in electric vehicles, wind turbines, advanced electronics, aerospace and defence applications. By establishing an integrated domestic value chain from NdPr oxide to finished magnets, the initiative seeks to reduce India's dependence on imports and strengthen supply-chain resilience.

The government expects the scheme to build indigenous manufacturing capabilities, improve India’s competitiveness in the global REPM market and support the country’s broader objectives of industrial self-reliance and its Net Zero 2070 commitment.

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Ministry of Heavy Industries

REPM manufacturing ecosystem

Scheme for REPM

Sintered Rare Earth Permanent Magnet Manufacturing