The scheme, approved by the Union Cabinet in November 2025, seeks to establish 6,000 tonnes per annum (TPA) of integrated REPM manufacturing capacity in India.
The government has received 20 bids from domestic and overseas companies for setting up integrated manufacturing facilities for sintered neodymium-iron-boron (NdFeB) rare earth permanent magnets, in a major push to reduce India’s dependence on imports of the critical components.The bids were received under the Centre’s ₹7,280-crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM), being implemented by the Ministry of Heavy Industries. The technical bids were opened on Thursday in the presence of bidders, the ministry said.Among the bidders are Larsen & Toubro, Coal India, 20 Microns, Attero Recycling, Lohum Magnets & Energy Solutions, Prozeal Green Energy, Proterial (India) and Singapore-based NEO Performance Materials, besides several joint ventures and smaller companies.The scheme, approved by the Union Cabinet in November 2025, seeks to establish 6,000 tonnes per annum (TPA) of integrated REPM manufacturing capacity in India.5 successful biddersThe capacity will be divided among five successful bidders through global competitive bidding, with each beneficiary eligible for up to 1,200 TPA.The seven-year scheme includes a two-year gestation period for setting up the manufacturing facilities, followed by five years of incentives linked to the sale of rare earth permanent magnets. The government had floated the request for proposal on the Central Public Procurement Portal on March 20, with August 12 as the deadline for submission of bids.Rare earth permanent magnets are critical components in electric vehicles, wind turbines, high-end electronics, aerospace and defence equipment. They are among the strongest permanent magnets and are particularly important for electric motors and other advanced industrial applications.The scheme is designed to create an integrated domestic value chain, from NdPr (neodymium-praseodymium) oxide to finished magnets, rather than merely assembling imported magnet components. The government expects this to reduce import dependence and strengthen India’s position in the global rare-earth magnet supply chain.The strong response to the tender comes as countries seek to diversify critical-mineral and rare-earth supply chains. For India, developing domestic magnet-making capacity is particularly significant because the country currently has much greater capability in mining and processing rare-earth resources than in converting them into high-value finished products.The government has positioned the scheme as part of its broader push for technological self-reliance and as a measure to support clean-energy manufacturing and its Net Zero 2070 target.The key news point: 20 bids for capacity that will ultimately be awarded to just five manufacturers, creating up to 6,000 TPA of integrated rare-earth permanent magnet capacity with a ₹7,280-crore government support framework.Published on August 13, 2026
