Government Invites Bids for Rare Earth Magnet Manufacturing Under Rs 7,280 Crore Scheme
RFP Issued to Build 6,000 MTPA Domestic Magnet Production Capacity
New Delhi, March 20 – The government has invited bids for setting up manufacturing facilities with a total capacity of 6,000 metric tonnes per annum under the Rs 7,280 crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet.The Ministry of Heavy Industries has issued a request for proposal to select beneficiaries for establishing integrated Sintered NdFeB Rare Earth Permanent Magnet manufacturing units across the country.
Key Dates and Transparent Bidding Process Announced
According to the notification, the pre-bid conference is scheduled for April 7, while the final date for bid submission is May 28. Technical bids will be opened on May 29, 2026.The bidding process will be conducted online through the Central Public Procurement Portal using a transparent Least Cost System. It will follow a two-stage structure involving technical and financial evaluations.
Scheme Structure and Incentives for Manufacturers
The scheme, approved by the Cabinet chaired by Prime Minister Narendra Modi in November, aims to establish a total manufacturing capacity of 6,000 MTPA of integrated rare earth permanent magnet facilities in India.Selected beneficiaries will receive capital subsidies along with sales-linked incentives. Each participant will be allocated production capacity ranging from 600 MTPA to 1,200 MTPA, in multiples of 100 MTPA.
Out of the total scheme outlay, Rs 750 crore has been earmarked for capital subsidies, while Rs 6,450 crore is allocated for sales-linked incentives.
Additionally, the three lowest bidders will receive limited assured supply of NdPr oxide from IREL India Ltd, ensuring access to critical raw materials.
Strategic Importance of NdFeB Magnets in Key Sectors
Rare earth permanent magnets, particularly NdFeB magnets, play a vital role in sectors such as electric vehicles, wind energy, advanced electronics, aerospace, and defence.Push to Strengthen Domestic Supply Chain
The initiative is designed to build a complete domestic value chain, covering processing of NdPr oxide to finished magnet production. It is expected to reduce reliance on imports from China while strengthening India’s position in the global rare earth magnet market.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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