India Opens Bidding for World’s Strongest Magnets Manufacturing Under ₹7,280 Crore Scheme

India has taken a decisive step toward building self-reliance in advanced materials with the launch of bidding for integrated Rare Earth Permanent Magnet (REPM) manufacturing facilities. The Ministry of Heavy Industries has released the Request for Proposal (RFP) inviting companies to set up sintered NdFeB REPM plants with a total capacity of 6,000 Metric Tonnes Per Annum (MTPA).

A First-of-Its-Kind Initiative

Approved by the Union Cabinet in November 2025, the ₹7,280 crore scheme is the first national program dedicated to rare earth magnet manufacturing. These magnets—among the strongest in the world—are critical components in electric vehicles, wind turbines, aerospace systems, defence technologies, and high-end electronics. By establishing a complete value chain from NdPr oxide to finished magnets, India aims to cut import dependence and position itself as a global hub in this strategic sector.

Incentives and Support

• Capital subsidy of ₹750 crore
• Sales-linked incentives worth ₹6,450 crore
• Assured supply of NdPr oxide from IREL (India) Ltd. for the three lowest bidders

Each selected beneficiary will be allocated a manufacturing capacity between 600 MTPA and 1,200 MTPA, ensuring balanced distribution across multiple players.

Transparent Bidding Process

The bidding will be conducted online through the Central Public Procurement (CPP) Portal using a two-stage Least Cost System (LCS):

• Technical Bid
• Financial Bid

• Tender documents available: 20 March 2026
• Pre-bid conference: 7 April 2026
• Bid submission deadline: 28 May 2026
• Technical bid opening: 29 May 2026

Strategic Importance

Rare Earth Permanent Magnets are indispensable for clean energy and advanced technology. Their role in electric mobility and renewable energy aligns with India’s broader goals of sustainability and energy independence. By fostering domestic production, the scheme not only reduces reliance on imports but also strengthens India’s position in global supply chains.

Looking Ahead

This initiative signals India’s ambition to lead in high-tech manufacturing. With strong government backing, transparent processes, and lucrative incentives, the scheme is expected to attract major industry players and accelerate India’s journey toward technological self-reliance.