EVs, wind energy, electronics, and defence sectors to get a push, reduce import dependency
On November 26, 2025, the Union Cabinet chaired by Prime Minister Narendra Modi approved a scheme to promote manufacturing of Sintered Rare Earth Permanent Magnet.
Following this, the Ministry of Heavy Industries has called-on domestic and global companies to set up manufacturing facilities for rare earth permanent magnets.
The Request for Proposal (RFP) aims to invite manufacturers to set up integrated facilities for producing sintered NdFeB rare earth permanent magnets (REPM) in India.
Through this initiative, government wants to develop a complete value chain within India for REPMs so that import dependence is reduced.
Capacity and allocation
Ministry has planned 6,000 metric tonnes per annum (MTPA) manufacturing capacity under this scheme for which manufacturers can bid for capacities ranging from 600-1200MTPA.
Govt support
Govt is offering ₹72.80 billion, under which companies can avail ₹7.5 billion as capital subsidy and ₹64.50 billion as sales-based incentives to promote this manufacturing in India.
Companies will also get a limited but assured supply of NdPr oxide from IREL (India) Ltd. for the three lowest bidders. (IREL is a central public sector enterprise under DAE and is the only company in India that is engaged in the mining of rare-earth ores and refining these into REOs).
Bidding process
Ministry also notified that bidding process for the scheme will be held online through a transparent Least Cost System (LCS) comprising two-stage process through CPP Portal. Bidders will be required to submit detailed technical and financial documents, including DPR, financial statements and bid security. The tender also requires a fee of ₹450,000 and an EMD of ₹10 million.
Timeline
Tender documents are available from March 20, 2026. A pre-bid conference is scheduled for April 7, while the last date for submission of bids is May 28. Technical bids will be opened on May 29.
What is a sintered rare earth permanent magnet ?
Sintered rare earth permanent magnets are very strong magnets made from special rare earth materials using a heating process. These sintered NdFeB REPMs are mainly used in several essential sectors such as EVs, renewable energy, electronics, defence and aerospace, etc.
Source: PIB
