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India Seeks Proposals for Rare Earth Magnet Plants Under Rs7,280 Crore Manufacturing Push

The Government of India has invited bids to establish rare earth magnet manufacturing facilities under a Rs 7,280 crore incentive scheme aimed at strengthening domestic production capabilities and reducing reliance on imports.

The Ministry of Heavy Industries has issued a request for proposal (RFP) to select companies for setting up integrated sintered NdFeB rare earth permanent magnet (REPM) plants, with a combined production capacity of 6,000 metric tonnes per annum. The initiative is part of a broader strategy to build a self-sufficient supply chain for critical materials.

Interested bidders can apply through a two-stage selection process, comprising technical and financial evaluations, via the Central Public Procurement Portal under a least-cost selection system. The tender documents have been available since March 20, with a pre-bid meeting scheduled for April 7. The final date for submission is May 28, while technical bids will be opened on May 29.

The scheme was approved by the Union Cabinet led by Narendra Modi in November 2025. It includes a capital subsidy of Rs 750 crore along with sales-linked incentives worth Rs 6,450 crore. Selected companies will be allotted manufacturing capacities ranging between 600 and 1,200 tonnes annually.

Additionally, the plan ensures limited access to key raw materials, including NdPr oxide, to be supplied by IREL (India) Ltd. for the three lowest bidders.

Rare earth permanent magnets are essential components across sectors such as electric vehicles, wind energy, consumer electronics, aerospace, and defence. Through this initiative, the government aims to establish an end-to-end domestic ecosystem, spanning raw material processing to finished magnet production, thereby enhancing India’s strategic and industrial resilience.