Govt floats global tender to build rare earth magnet capacity

The Ministry of Heavy Industries has invited global bids to set up integrated sintered rare earth permanent magnet manufacturing facilities in India, marking a key step in building domestic capacity for a critical clean energy and electronics component. 

The ministry on Friday issued a Request for Proposal (RFP) to select beneficiaries for establishing sintered NdFeB (neodymium-iron-boron) rare earth permanent magnet (REPM) facilities with a total capacity of 6,000 metric tonnes per annum (MTPA). The initiative falls under the government’s Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet. 

Two-stage bidding via CPP portal 

According to the official announcement, the bidding process will be conducted online through the Central Public Procurement (CPP) portal using a transparent Least Cost System (LCS). It will follow a two-stage structure, comprising technical and financial bids. 

Tender documents have been made available from March 20. A pre-bid conference is scheduled for April 7 while the deadline for submission of bids is May 28. Technical bids will be opened on May 29. 

Selected companies will be eligible for capital subsidies and sales-linked incentives under the scheme. Each beneficiary will be allocated manufacturing capacity ranging from 600 MTPA to 1,200 MTPA. 

Incentives and supply support 

The scheme, approved by the Union Cabinet in November 2025 with a financial outlay of ₹7,280 crore, includes a capital subsidy of ₹750 crore and sales-linked incentives worth ₹6,450 crore. 

To support early-stage operations, the government has also assured limited supply of NdPr oxide, a key raw material, through IREL (India) Ltd. for the three lowest bidders. 

Rare earth permanent magnets are critical components used in electric vehicles, wind turbines, consumer electronics, and defence systems. By developing a full domestic value chain, from raw material processing to finished magnets, the government aims to reduce reliance on imports and position India as a competitive player in the global REPM market. 

The move could strengthen India’s role in strategic sectors such as clean mobility and renewable energy while also supporting long-term supply security for advanced manufacturing.