India is set to begin the bidding process for establishing rare earth permanent magnet (REPM) manufacturing facilities as part of a government-approved incentive programme. According to reports, bids are expected to be invited by the end of January 2026.
Bid Invitation Under REPM Scheme
The ₹7,280 crore scheme, approved in November 2025, is aimed at enabling the creation of an integrated annual manufacturing capacity of 6,000 metric tonnes of rare earth permanent magnets. Draft guidelines for the scheme are expected to be issued soon for stakeholder comments.
Pre-bid consultations are currently underway to finalise the process before the bidding window opens.
Technology and Raw Material Strategy
The Department of Science and Technology (DST) has developed domestic technology for REPM production. To support manufacturing and maintain secured supply, discussions are ongoing with suppliers from Australia, Africa, the UK, and South America for sourcing rare earth oxides.
As per the available information, one tonne of rare earth oxide can yield approximately three tonnes of permanent magnets, making long-term raw material procurement a key factor in the programme.
Context and Sector Relevance
The initiative follows recent disruptions in global supply chains after China introduced restrictions on rare earth magnet exports. Though exports were later resumed conditionally, the development highlighted supply-related challenges for Indian industries.
Rare earth permanent magnets are used across multiple sectors, including:
- Electric mobility
- Renewable energy technology
- Defence and aerospace
- Electronics manufacturing
Summary:
India is preparing to invite bids by late January 2026 for rare earth permanent magnet manufacturing under a ₹7,280 crore incentive scheme approved in November 2025. Draft guidelines will soon be released for consultation, and the government is working on securing technology and raw material supply to support the programme.
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