New Delhi: The Ministry of Heavy Industries has invited global bids for setting up integrated Sintered Rare Earth Permanent Magnet manufacturing facilities with a total capacity of 6,000 MTPA under its flagship scheme aimed at strengthening domestic production capabilities.
The Request for Proposal (RFP) released on March 20, 2026, outlines the process for selecting beneficiaries to establish integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing units in India.
The initiative underlines the government’s push to scale up the Sintered Rare Earth Permanent Magnet ecosystem and reduce reliance on imports.
Bidding Process for Sintered Rare Earth Permanent Magnet Facilities
The bidding process for Sintered Rare Earth Permanent Magnet facilities will be conducted online through a transparent Least Cost System (LCS), comprising a two-stage mechanism involving Technical and Financial bids.
The process will be hosted on the Central Public Procurement (CPP) Portal, ensuring transparency and ease of participation.
As per the notification, tender documents for the Sintered Rare Earth Permanent Magnet scheme are available from March 20, 2026.
A pre-bid conference is scheduled for April 7, 2026, while the last date for bid submission is May 28, 2026. Technical bids will be opened on May 29, 2026.
The Sintered Rare Earth Permanent Magnet initiative stems from the Union Cabinet’s approval on November 26, 2025, under the leadership of Prime Minister Narendra Modi.
The scheme carries a financial outlay of ₹7,280 crore and aims to establish 6,000 MTPA capacity of integrated REPM manufacturing facilities across the country.
Also Read: Rare Earth Permanent Magnet Manufacturing Scheme: India Targets 6,000 MTPA Capacity
Under the scheme, each selected beneficiary in the Sintered Rare Earth Permanent Magnet segment will be allocated manufacturing capacity ranging from 600 MTPA to 1,200 MTPA in multiples of 100 MTPA.
The government has provisioned a capital subsidy of ₹750 crore along with sales-linked incentives worth ₹6,450 crore.
Additionally, the scheme ensures limited assured supply of NdPr oxide from IREL (India) Ltd. for the three lowest bidders, strengthening the raw material supply chain for Sintered Rare Earth Permanent Magnet production in India.
Rare Earth Permanent Magnets are among the most powerful magnets globally and are widely used in electric vehicles, wind turbines, high-end electronics, aerospace, and defence systems.
By developing a complete value chain – from NdPr oxide to finished products – the Sintered Rare Earth Permanent Magnet scheme is expected to significantly reduce import dependence and position India as a competitive player in the global REPM market.
