To reduce reliance on imports and establish a domestic supply chain for essential components, the Ministry of Heavy Industries has announced global tenders to establish rare earth permanent magnet (REPM) manufacturing plants in India.
The government has issued a request for proposal (RFP) to identify companies that will create integrated sintered NdFeB magnet manufacturing facilities with an overall capacity of 6,000 metric tonnes per annum (MTPA). These high-performance magnets are crucial for electric vehicles, wind turbines, electronics, and defense systems.
Bidding will take place online through the Central Public Procurement Portal using a two-stage least cost system (LCS). Tender documents are available starting March 20, with the bid submission deadline set for May 28, and technical bids will be opened the following day.
This initiative falls under the Centre’s ₹7,280 crore scheme, approved in November last year, designed to establish a complete domestic value chain—from rare earth oxides to finished magnets. India currently relies significantly on imports for these materials, making this sector both strategically and economically vital.
The initiative also aligns with recent amendments to Press Note 3 norms by the government, aimed at facilitating investments in critical sectors. “In specific industries—such as electronics, rare earth materials, solar, and capital goods manufacturing—there is a necessity to collaborate with companies from neighboring countries,” MeitY Secretary S. Krishnan stated in an interview with CNBC-TV18.
“In these industries, the need for investment is now implied, and we are indicating that such investments are encouraged, with necessary safeguards in place,” he continued.
Also read: Electronics, rare earths among sectors to gain expedited FDI approvals under revised Press Note 3: MeitY
Under this initiative, successful bidders will be assigned manufacturing capacities between 600 and 1,200 MTPA. The government is offering a combination of capital subsidies and sales-linked incentives, alongside limited access to essential raw materials.
Entities can receive capital assistance of up to ₹750 crore, while a larger pool of ₹6,450 crore is allocated for production-linked incentives. Moreover, the three lowest bidders will be guaranteed supply of NdPr oxide from IREL (India) Ltd., reducing raw material risks.
This initiative comes as India aims to secure supply chains for next-generation sectors like EVs and clean energy, where access to rare earth magnets is a critical constraint.
First Published: Mar 20, 2026 4:51 PM IST
