Govt extends deadline for ₹7,280-crore rare earth magnet scheme amid push for EV self-reliance

The Centre has extended the bid submission deadline for its ₹7,280-crore incentive scheme aimed at building domestic rare earth permanent magnet manufacturing capacity, as India sharpens its focus on reducing import dependence in critical clean-energy and mobility technologies.

The Ministry of Heavy Industries (MHI) on Friday said the bid due date for the global tender under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) has been extended to June 29 from May 28 following requests from multiple stakeholders. The opening of technical bids has also been deferred to June 30.

The tender, first floated on March 20, seeks to identify companies that will establish integrated rare earth permanent magnet manufacturing facilities in India.

The REPM scheme, approved by the Union Cabinet in November 2025, aims to create 6,000 metric tonnes per annum (MTPA) of domestic manufacturing capacity for sintered rare earth magnets — a key component used in electric vehicles (EVs), wind turbines, advanced electronics, aerospace systems and defence applications.

Critical to India’s EV ambitions

Rare earth permanent magnets, particularly those made using neodymium-praseodymium (NdPr), are considered essential for high-efficiency electric motors and clean-energy technologies. India currently relies heavily on imports for these magnets and associated processing technologies, with China dominating the global supply chain.

The government’s latest push comes as India accelerates investments in EVs, renewable energy and advanced manufacturing under its broader self-reliance strategy. Industry estimates suggest demand for rare earth magnets is expected to rise sharply over the next decade, driven by rapid electrification of mobility and expansion in renewable power capacity.

By incentivising local manufacturing, the government aims to create an end-to-end ecosystem spanning processing of rare earth oxides to finished magnet production.

Global supply-chain concerns drive urgency

The scheme also reflects growing geopolitical concerns around concentration of critical mineral supply chains. Several countries, including the US, Japan and members of the European Union, have announced policies to diversify sourcing of rare earth materials amid rising strategic dependence on China.

For India, domestic REPM manufacturing is increasingly being viewed as a strategic necessity rather than merely an industrial policy initiative. Analysts say localising the supply chain could help reduce vulnerability for sectors such as automobiles, electronics and defence while strengthening India’s position in the global clean-tech manufacturing landscape.

The ministry said responses to bidder queries will be issued on June 9, while the revised tender schedule has been uploaded on the Central Public Procurement portal.