The Ministry of Heavy Industries has released a Request for Proposal (RFP) to choose beneficiaries for developing integrated sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing units worth Rs 7,280 crore. These facilities will collectively have a capacity of 6,000 Metric Tonnes Per Annum (MTPA) to promote the manufacturing of Sintered Rare Earth Permanent Magnets.
Under this scheme, approved by the Union Cabinet in November 2025, selected beneficiaries will receive an allocation ranging from 600 to 1,200 MTPA, along with a capital subsidy of Rs 750 crore and sales-linked incentives of Rs 6,450 crore. Additionally, the three lowest bidders will be guaranteed a limited supply of NdPr oxide from IREL (India) Ltd.
The bidding process allows interested parties to submit their proposals for establishing these manufacturing facilities in India, making them eligible for capital subsidy and sales-linked incentives. The bidding will be conducted online using a transparent Least Cost System (LCS) with two stages: Technical Bid and Financial Bid through the Central Public Procurement (CPP) Portal.
Tender documents became available on March 20, 2026, with a pre-bid conference scheduled for April 7, 2026, and bids due by May 28, 2026. Technical bids will be opened on May 29, 2026, as per the statement.
This pioneering scheme aims to create a total capacity of 6,000 Metric Tonnes per Annum (MTPA) of integrated Rare Earth Permanent Magnet manufacturing facilities in India. By establishing a self-reliant ecosystem and positioning India as a significant player in the global REPM market, the initiative seeks to reduce import reliance in this sector.
Rare Earth Permanent Magnets, known for their strength, find applications in electric vehicles, wind turbines, advanced electronics, aerospace, and defense systems, making them crucial components in various industries.
