L&T, Coal India among 20 bidders for ₹7,280 crore rare earth magnet scheme
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The government has received 20 bids from companies seeking to set up integrated sintered NdFeB rare earth permanent magnet (REPM) manufacturing facilities in India under a ₹7,280 crore central scheme, indicating strong industry interest in building a domestic supply chain for the critical component.
The Ministry of Heavy Industries (MHI) received the bids through a global tender floated on the Central Public Procurement portal. The technical bids were opened on August 13, 2026, in the presence of the participating bidders.
Among the prominent bidders are Larsen & Toubro and Coal India, along with companies operating in areas including rare-earth materials, recycling, energy and advanced manufacturing.
Other bidders include 20 Microns, Attero Recycling, Lohum Magnets & Energy Solutions, Proterial (India), Renew, Prozeal Green Energy, NEO Performance Materials, PrNd Metal and Magnets and several other companies.
20 companies compete for five slots
The Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) in November 2025 with a financial outlay of ₹7,280 crore. The scheme notification was subsequently issued by MHI in December 2025.
The government floated the request for proposal on March 20, 2026, with the pre-bid conference held on April 7. The deadline for submitting bids was August 12, with the technical bids opened a day later.
The scheme envisages selecting five beneficiaries through a global competitive bidding process. Each beneficiary can be allocated up to 1,200 metric tonnes per annum (MTPA) of manufacturing capacity.
Government targets 6,000 MTPA capacity
The first-of-its-kind initiative aims to establish an aggregate 6,000 MTPA capacity for integrated REPM manufacturing in India.
The seven-year scheme includes a two-year gestation period for setting up manufacturing facilities, followed by five years of incentive disbursement linked to the sale of REPMs.
The government's objective is to develop an integrated domestic value chain stretching from NdPr oxide to finished rare earth permanent magnets, reducing India's dependence on imports and strengthening the country's position in the global REPM market.
Magnets critical for EVs, defence
Rare earth permanent magnets are used in several high-technology applications, including electric vehicles, wind turbines, high-end electronics, aerospace and defence systems.
The government said developing indigenous REPM production would help secure supplies for domestic industries while improving India's competitiveness in global markets. It also linked the initiative to the country's net zero 2070 commitment and the broader goal of building a technologically self-reliant industrial base.