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MHI Calls for Bids to Establish Rare Earth Magnet Manufacturing Units; Deadline Set for May 28, 2026

The Ministry of Heavy Industries has invited bids to develop domestic manufacturing facilities for sintered neodymium-iron-boron (NdFeB) rare earth permanent magnets, a key component used in electric vehicles, wind turbines, advanced electronics, aerospace, and defence systems. The last date for bid submission is May 28, 2026, with technical bids scheduled to be opened on May 29.

The initiative aims to build a total manufacturing capacity of up to 6,000 metric tonnes per annum (MTPA), with individual project sizes ranging between 600 and 1,200 MTPA. Bidders are required to apply in multiples of 100 MTPA and establish fully integrated facilities covering the complete production chain—from neodymium-praseodymium (NdPr) oxide processing to final magnet manufacturing.

Applicants must submit a detailed project report outlining technical capabilities, financial planning, implementation timelines, and manufacturing processes. The program duration is seven years, including a two-year setup phase followed by five years of incentive support based on production and sales performance.

To participate, companies must meet specific financial criteria, including minimum net worth requirements based on proposed capacity. They are also required to submit a tender fee of Rs 4.5 lakh and provide bid security of Rs 1 crore. Performance security requirements vary depending on the allocated capacity.

Selected bidders must ensure timely project execution, including commissioning at least 50% of their capacity within three years. The scheme mandates that all critical manufacturing processes be carried out in-house, ensuring the development of a complete domestic value chain.

The government will provide financial support through capital subsidies of up to 15% of eligible investments, subject to capacity-linked caps, along with sales-linked incentives awarded through competitive bidding. Incentives will be disbursed over five years, based on actual production and sales.

Additionally, limited access to NdPr oxide may be facilitated through IREL (India) Limited for select top bidders. However, companies are required to independently secure raw material supply and cannot base their proposals on assured availability.

This move is part of India’s broader effort to strengthen domestic manufacturing capabilities in critical materials and reduce dependence on imports while supporting the growth of clean energy and advanced technology sectors.