Business News | India Invites Global Bids for Rare Earth Magnet Manufacturing Units
Get latest articles and stories on Business at LatestLY. The Ministry of Heavy Industries has invited global bids for setting up integrated manufacturing facilities for sintered rare earth permanent magnets (REPM) under a government scheme aimed at boosting domestic production.
New Delhi, [India] March 20 (ANI): The Ministry of Heavy Industries has invited global bids for setting up integrated manufacturing facilities for sintered rare earth permanent magnets (REPM) under a government scheme aimed at boosting domestic production.
According to an official statement, the Ministry has issued a Request for Proposal (RFP) to select beneficiaries for establishing NdFeB-based REPM manufacturing units with a total capacity of 6,000 metric tonnes per annum (MTPA).
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"The release said, "With this bidding process, prospective applicants can submit their bids to establish integrated sintered NdFeB REPM manufacturing facilities in India and can be eligible for availing capital subsidy as well as sales-linked incentives under the Scheme."
The scheme provides financial incentives, including a capital subsidy of Rs 750 crore and sales-linked incentives worth Rs 6,450 crore. Each selected entity will be allocated production capacity ranging between 600 MTPA and 1,200 MTPA.
Rare earth permanent magnets are critical components used in sectors such as electric vehicles, wind energy, electronics, aerospace and defence. The initiative aims to establish a complete domestic value chain, from raw material (NdPr oxide) to finished magnets, thereby reducing India's dependence on imports.
It says, "The bidding will be conducted online through a transparent Least Cost System (LCS) comprising two-stages (Technical Bid and Financial Bid) through the Central Public Procurement (CPP) Portal."
Tender documents are available from March 20, 2026, with the bid submission deadline set for May 28, 2026. Technical bids will be opened on May 29, 2026.
The scheme also includes provisions for an assured supply of NdPr oxide through IREL (India) Ltd. for select bidders, ensuring raw material security for domestic manufacturers.
As per the data by the Ministry of Mines, India's rare earth market is heavily dependent on imports, with China being the dominant source. Due to recent Chinese export curbs, the Indian government has also launched the National Critical Mineral Mission to diversify sources.
As per a report by Crisil, in April 2025, China - the world's dominant exporter of rare earth magnets - imposed export restrictions on seven rare earth elements and finished magnets, mandating export licences.
"With the clearance process taking at least 45 days, this added scrutiny has significantly delayed approvals. And the growing backlog has further slowed clearances, tightening global supply chains," Crisil said.
India, which sourced over 80 per cent of its 540 tonne magnet imports from China last fiscal, felt the impact, Crisil asserted. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)