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The Centre has invited bids to establish manufacturing facilities for sintered rare earth permanent magnets with a total capacity of 6,000 metric tonnes per annum under an INR 7,280 crore incentive scheme. Issued by the Ministry of Heavy Industries, the tender seeks proposals for integrated NdFeB magnet units through a two-stage bidding process. The scheme offers capital subsidies and sales-linked incentives, with capacity allocation ranging between 600 and 1,200 MTPA per unit. It also includes assured raw material supply for select bidders. The initiative aims to build a domestic value chain for critical components used in electric vehicles, renewable energy, and defence, while reducing dependence on imports, particularly from China.
The Ministry of Heavy Industries has invited bids to establish domestic manufacturing facilities for sintered rare earth permanent magnets with a total capacity of 6,000 metric tonnes per annum (MTPA), under an INR 7,280 crore government-backed incentive scheme, according to an official notification issued in the past week. The initiative is aimed at strengthening India's manufacturing base for critical components used across sectors such as electric mobility, renewable energy, electronics, and defence. Advertisement
The ministry has issued a request for proposal (RFP) for the selection of beneficiaries to set up integrated Sintered NdFeB Rare Earth Permanent Magnet manufacturing units. The bidding process will be conducted online through the Central Public Procurement Portal using a Least Cost System, structured as a two-stage process comprising technical and financial evaluations.
As per the outlined timeline, a pre-bid conference has been scheduled for April 7, while the last date for submission of bids is May 28. Technical bids are set to be opened the following day. The structured timeline is intended to facilitate a transparent and competitive selection process.
The scheme, approved by the Union Cabinet chaired by Prime Minister Narendra Modi in the past year, seeks to establish a cumulative manufacturing capacity of 6,000 MTPA across multiple facilities. Each selected beneficiary will be allocated production capacity ranging from 600 MTPA to 1,200 MTPA, in multiples of 100 MTPA, allowing for distributed manufacturing across participants.
Financial support under the scheme includes a capital subsidy allocation of INR 750 crore and sales-linked incentives amounting to INR 6,450 crore. In addition, the three lowest bidders will be provided limited assured access to NdPr oxide from IREL (India) Ltd., ensuring the availability of a key raw material required for magnet production.
Rare earth permanent magnets, particularly neodymium-iron-boron (NdFeB) magnets, are essential components in a range of advanced applications, including electric vehicles, wind turbines, consumer electronics, aerospace systems, and defence equipment. At present, global supply chains for these materials are heavily concentrated, with China being a dominant supplier.
The government's initiative is designed to create an integrated domestic value chain, covering stages from raw material processing to finished magnet production. By incentivising local manufacturing and ensuring partial raw material access, the scheme aims to reduce import dependence while enabling India to develop capabilities in a strategically important segment.
The move also aligns with broader industrial policy objectives focused on strengthening domestic manufacturing ecosystems for high-technology components and supporting sectors linked to energy transition and advanced engineering.
Source - PTI
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