The Ministry of Heavy Industries has released the Request for Proposal (RFP) for selection of beneficiaries to set up integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities of 6,000 Metric Tonnes Per Annum (MTPA) capacity under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet.
With this bidding process, prospective applicants can submit their bids to establish integrated sintered NdFeB REPM manufacturing facilities in India and can be eligible for availing 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 Central Public Procurement (CPP) Portal.
The tender documents are available from 20th March, 2026. Pre-bid conference shall be held on 7th April, 2026.The bid due date is 28th May, 2026 and the Technical bids shall be opened on 29th May, 2026.
On 26th November 2025, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet with a financial outlay of Rs.7,280 crore. The Scheme is first-of-its-kind initiative 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.
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 ₹750 crore and, sales-linked incentive of ₹6,450 crore, with limited assured supply of NdPr oxide from IREL (India) Ltd. 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 complete value chain from NdPr oxide to finished magnets in India, the Scheme is expected to significantly reduce import dependence in this sector.
