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The Ministry of Heavy Industries has received 20 bids from companies seeking to establish integrated sintered neodymium-iron-boron (NdFeB) rare earth permanent magnet manufacturing facilities in India. Larsen & Toubro and Coal India are among the bidders under the government’s INR 7,280-crore scheme, which aims to create 6,000 metric tonnes per annum of domestic manufacturing capacity. The initiative is intended to build an indigenous rare earth magnet supply chain, reduce import dependence and strengthen India’s position in a sector critical to electric vehicles, renewable energy, electronics, aerospace and defence applications.
The Ministry of Heavy Industries (MHI) has received 20 bids for setting up integrated manufacturing facilities for sintered rare earth permanent magnets, with Larsen & Toubro and Coal India among the companies participating in the government’s initiative to develop domestic production capacity.
The bids were submitted through a global tender on the Central Public Procurement Portal for selection of manufacturers under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM). The technical bids were opened on August 13 in the presence of participating bidders at the Ministry of Heavy Industries.
The 20 bidders include 20 Microns, Attero Recycling, Coal India, Larsen & Toubro, Lohum Magnets & Energy Solutions, NEO Performance Materials of Singapore, Proterial (India), Prozeal Green Energy, Renew, Shankaranarayana Constructions and Starteck Finance. Other participants include BaRupOn–IRP Consortium, Jay Fe Cylinders, Keystone Infra–Huebox Interiors joint venture, Midwest Energy–Midwest Advanced Materials joint venture, N.A.N. Magnetech, Nexon Geochem, PrNd Metal and Magnets, Ramp Metals & Minerals and Solpro Greentech.
The government approved the REPM manufacturing scheme in November 2025 with a financial outlay of INR 7,280 crore. The scheme notification followed in December, while the request for proposal was issued in March 2026. A pre-bid conference was subsequently held in April, before the bidding process closed on August 12.
The programme is designed to establish 6,000 metric tonnes per annum (MTPA) of integrated rare earth permanent magnet manufacturing capacity in India. Under the proposed structure, five beneficiaries will be selected through competitive bidding, with each beneficiary eligible for an allocation of up to 1,200 MTPA.
The scheme has a seven-year duration from the date of award. This includes a two-year gestation period for establishing the integrated facilities, followed by five years during which incentives will be disbursed based on the sale of REPM products.
Rare earth permanent magnets are important components in several high-technology and clean-energy applications. They are used in electric vehicles, wind turbines, advanced electronics, aerospace equipment and defence systems. Developing manufacturing capability within the country is therefore intended to address both industrial demand and supply-chain vulnerabilities.
A key objective is to develop an integrated domestic value chain extending from neodymium-praseodymium oxide to finished magnets. This could help reduce India's dependence on imported permanent magnets while creating domestic capabilities across the manufacturing chain.
The participation of companies from sectors including engineering, mining, materials, recycling and renewable energy indicates the breadth of interest in developing this emerging manufacturing ecosystem. The next stage will involve evaluation of the technical bids and selection of beneficiaries under the competitive process.
If implemented as planned, the scheme will provide India with dedicated domestic capacity for a strategic industrial material and support the government's broader objective of building a technologically self-reliant manufacturing base.
Source- PIB
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