The Ministry of Heavy Industries has advanced its ₹7,280 crore Rare Earth Magnet Manufacturing Scheme, attracting significant participation from leading industrial players. The government has set May 28, 2026, as the deadline for bid submissions, with technical bids scheduled to be opened on May 29, 2026.
Bidding Framework and Timeline
The bidding process will be conducted online via the Central Public Procurement (CPP) Portal using a two-stage structure under the Least Cost System (LCS). Interested participants have been invited to submit queries related to the scheme by April 22, ensuring clarity ahead of final bid submission.
Strong Turnout at Pre-Bid Conference
Approximately 25 companies took part in the pre-bid meeting held on April 7. Prominent participants included JSW Group, NLC India, Vedanta, and Hindustan Zinc Ltd, reflecting strong industry interest in the initiative.
During the session, government officials outlined key aspects such as eligibility criteria, bidding methodology, and operational expectations. Queries from stakeholders were also addressed to facilitate a smoother bidding process.
Production Capacity and Project Structure
The scheme targets the development of a cumulative production capacity of 6,000 metric tonnes per annum (MTPA) of sintered rare earth permanent magnets. Up to five companies will be selected under the programme.
Each successful bidder will be allowed to establish manufacturing facilities with a capacity of up to 1,200 MTPA. These facilities are expected to operate as integrated plants, with a primary focus on producing Neodymium-Iron-Boron (NdFeB) magnets.
Strategic Importance and Demand Drivers
Rare earth permanent magnets play a critical role in several high-growth sectors, including electric vehicles, renewable energy, electronics, aerospace, and defence. Their superior magnetic strength and efficiency make them essential for advanced technological applications.
Rising demand for clean energy solutions and next-generation manufacturing has significantly increased the need for such materials, positioning this sector as strategically important.
Policy Intent and Industry Development
The scheme follows the issuance of a Request for Proposal (RFP) on March 20, aimed at inviting bids for establishing domestic manufacturing capabilities. The broader objective is to reduce India’s dependence on imports and strengthen self-reliance in critical materials.
Additionally, the initiative seeks to foster a comprehensive domestic ecosystem for rare earth processing and magnet production, supporting long-term industrial growth.
Summary:
The ₹7,280 crore Rare Earth Magnet Manufacturing Scheme has garnered strong industry participation, with 25 firms attending the pre-bid meeting. The initiative aims to build 6,000 MTPA production capacity through integrated facilities, reduce import dependence, and strengthen India’s position in critical materials essential for EVs, renewable energy, and advanced manufacturing sectors.
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