20 Bids Submitted for ₹7,280-Crore Rare Earth Magnet Manufacturing Scheme in India
India's Ministry of Heavy Industries has received 20 bids under a ₹7,280-crore initiative aimed at establishing 6,000 TPA of integrated rare earth permanent magnet manufacturing capacity. The scheme seeks to enhance domestic production and reduce reliance on imports for critical components used in various high-tech applications.
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The Indian government has received 20 bids for a scheme to establish 6,000 TPA of integrated Sintered Rare Earth Permanent Magnet (REPM) manufacturing capacity, with a budget of ₹7,280 crore. The capacity will be allocated among five successful bidders, each eligible for up to 1,200 TPA.
This seven-year initiative includes a two-year setup period followed by five years of sales-linked incentives. The RFP was issued on March 20, 2026, and bids were due by August 12. The scheme, approved in November 2025, aims to create a domestic value chain from NdPr oxide to finished magnets, strengthening India's position in the global supply chain for electric vehicles, electronics, and defense applications. The successful implementation could mitigate India's import dependence on rare earth materials.
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