JSW, Vedanta among 25 bidders for ₹7,280 crore rare earth magnet push

At least 25 companies, including JSW Group, Vedanta, Hindustan Zinc Ltd (HZL) and NLC India, participated in a pre-bid conference for the ₹7,280-crore scheme to promote the manufacturing of sintered rare earth permanent magnet called by the heavy industries ministry on Tuesday, sources said.

The government will select a maximum of five entities through the bidding, with each entity setting up facilities of up to 1,200 MTPA, aggregating to a total of up to a maximum capacity of 6,000 MTPA.

"We welcome the Ministry of Heavy Industries' forward-looking scheme to promote rare earth permanent magnet manufacturing, a crucial component for industries like EV, aerospace, defence, and consumer electronics. We are assessing the opportunity as this initiative aligns with our focus on critical minerals and presents a horizontal expansion opportunity," a Vedanta Spokesperson told PTI.

On March 20, the heavy industries ministry invited bids for setting up manufacturing facilities for 6,000 metric tonnes per annum (MTPA) of magnets under the scheme.

"The pre-bid conference organised by the Ministry of Heavy Industries (MHI) for prospective bidders for the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet' has received wide participation and interest from at least 25 companies attending the conference," an official statement said.

The heavy industries ministry came out with a request for proposal (RFP) for the selection of beneficiaries to establish integrated sintered NdFeB rare earth permanent magnet manufacturing units.

The pre-bid conference was held on April 7, while the bidding date is May 28. Technical bids will be opened on May 29, 2026.

"A detailed presentation was made to the prospective bidders covering the Scheme contours, major provisions of RFP and procedural aspects of the bidding process. During the pre-bid conference, the queries raised by the prospective bidders were addressed. The participants were informed that the last date to submit their queries by way of e-mail (as per details provided in RFP) is 22nd April 2026," the heavy industries ministry stated.

The participants were also informed that the bidding will be held online through a transparent two-stage process, under the least cost system (LCS) mechanism through the CPP Portal, it added.

This scheme is expected to play a key role in strengthening domestic manufacturing capabilities, reducing import dependence, and supporting the development of a robust and globally competitive REPM ecosystem in India.

(Except for the headline, Fortune India has not edited the content of this PTI report.)