New Delhi: The Ministry of Heavy Industries invited global bids under the rare earth magnet scheme to set up integrated manufacturing facilities with a capacity of 6,000 MTPA.
The Ministry released a Request for Proposal to select beneficiaries for establishing sintered NdFeB rare earth permanent magnet units. These units will receive capital subsidy and sales-linked incentives under the scheme.
The government will conduct the bidding through a transparent Least Cost System. It will follow a two-stage process with technical and financial bids submitted online through the Central Public Procurement Portal.
The Ministry made the tender documents available on 20 March 2026. It will hold a pre-bid meeting on 7 April 2026. Applicants must submit bids by 28 May 2026, and officials will open technical bids on 29 May 2026.
Earlier, the Union Cabinet approved the rare earth magnet scheme on 26 November 2025 with an outlay of Rs 7,280 crore. The scheme aims to build domestic capacity and strengthen India’s global position.
Rare earth magnet scheme provides incentives and structured allocation
Under the rare earth magnet scheme, the government will allocate capacity between 600 MTPA and 1,200 MTPA to each selected bidder. It will assign capacity in multiples of 100 MTPA to ensure flexibility.
The scheme offers a capital subsidy of Rs 750 crore to support investments. In addition, it provides sales-linked incentives worth Rs 6,450 crore to boost production.
Moreover, the government will supply NdPr oxide to the three lowest bidders through IREL (India) Ltd. This step will help ensure stable raw material availability.
Rare earth permanent magnets play a key role in electric vehicles, wind turbines, electronics, aerospace and defence sectors. Therefore, the scheme focuses on building a complete domestic value chain.
As a result, the initiative will reduce import dependence and promote self-reliance. It will also support advanced manufacturing and strengthen industrial growth.
