Govt finalising RFP for ₹7,280-crore rare earth magnet scheme; Union Minister Kumaraswamy seeks industry participation
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The Centre is moving closer to rolling out a ₹7,280-crore incentive scheme aimed at building domestic manufacturing capacity for sintered rare earth permanent magnets (REPMs), with the government in the final stages of preparing the Request for Proposal (RFP).
Union Minister for Heavy Industries and Steel H.D. Kumaraswamy on Monday said the RFP for the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets is being finalised, urging both domestic and international players to participate in the bidding process. The minister was speaking while chairing a stakeholder consultation meeting attended by industry representatives from India and abroad.
Push for self-reliance in critical materials
Kumaraswamy described the scheme as a critical intervention to create a self-reliant, resilient and globally competitive REPM ecosystem, aligning with the government’s Viksit Bharat @2047 vision. He called on eligible companies to leverage the opportunity and contribute to India’s long-term industrial growth by setting up local manufacturing facilities.
Senior officials from across ministries and government offices participated in the meeting, including the Secretary, Ministry of Heavy Industries; Secretary, Department of Atomic Energy; CMD of IREL (India) Ltd.; Director (Technical) of NMDC; Director of the National Fertilizers and Technology Development Centre (NFTDC); along with other key stakeholders.
₹7,280-crore outlay, seven-year timeline
January 2026
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The scheme, notified on December 15, 2025, has a total financial outlay of ₹7,280 crore. Of this, ₹6,450 crore has been earmarked as sales-linked incentives tied to the production and sale of rare earth permanent magnets while ₹750 crore will be provided as capital subsidy to support the establishment of an aggregate manufacturing capacity of 6,000 metric tonnes per annum.
According to the Ministry of Heavy Industries, the programme will run for seven years from the date of award. This includes a two-year gestation period for setting up integrated REPM manufacturing facilities, followed by five years of incentive disbursement linked to sales performance.
Industry interest gains momentum
During the consultation, industry representatives outlined their technological capabilities and manufacturing plans, with several participants expressing interest in taking part in the scheme. The discussions highlighted both domestic readiness and overseas interest in partnering with India as it seeks to reduce import dependence and emerge as a key player in the global rare earth magnet value chain.
The stakeholder engagement underscores the government’s broader push to strengthen collaboration between policymakers and industry as India works towards technological self-sufficiency in critical materials essential for sectors such as electric mobility, renewable energy, electronics, and defence.