As India pushes magnet self-reliance, a key pre-bid meeting signals industry interest, while Parliament highlights resource strengths and persistent gaps in domestic processing capabilities.
The Ministry of Heavy Industries will hold a pre-bid consultation on 7 April 2026 in New Delhi for its ₹72.8 billion scheme to boost domestic production of rare earth magnets, as the government steps up efforts to reduce import dependence in critical technologies.
The meeting, scheduled at the India Habitat Centre, will allow stakeholders, including domestic and global industry players, to seek clarifications on the scheme’s guidelines, eligibility criteria and implementation framework before submitting bids.
The consultation follows the issuance of the request for proposals (RFP) in March 2026, with around 20 companies having participated in earlier discussions with the ministry.
The scheme, approved by the Union Cabinet in November 2025, proposes capital incentives for five manufacturing plants and sales-linked incentives over five years. It is expected to run for seven years, including a two-year gestation period for investments and the setup of processing facilities.
The initiative aims to establish a permanent magnet production capacity for rare earths of 6000 metric tonnes per annum.
The policy push comes amid concerns over supply vulnerabilities, particularly China’s dominance in the sector. China accounts for a majority share of global rare earth mining and processing capacity and halted magnet exports in April 2025 amid a tariff dispute with the United States (US).
Industry participants have also flagged concerns around raw material availability, as India Rare Earth Ltd is expected to supply rare earth oxides to a limited number of selected bidders, although the government has indicated that supply constraints will be addressed.
Separately, the government informed Parliament on 2 April that India possesses significant rare earth reserves. Estimates indicate around 7.23 million tonnes of in-situ total rare earth oxide equivalent in monazite deposits across multiple states, along with 1.29 million tonnes in hard rock formations.
However, challenges including low ore grades, regulatory constraints and limited processing infrastructure have restricted domestic production, contributing to continued reliance on imports for critical components such as rare earth magnets.
Read more: Government to build domestic industry for rare earth permanent magnets
