₹7,280 crore scheme draws bids
Key Highlights:
- 20 companies have bid for India’s ₹7,280-crore rare earth magnet scheme.
- Coal India and Larsen & Toubro are among the bidders.
- The scheme aims to create 6,000 MTPA integrated REPM manufacturing capacity.
- Five beneficiaries will be selected, with up to 1,200 MTPA capacity each.
- The programme includes two years for facility development and five years of sales-linked incentives.
- The initiative seeks to reduce India’s dependence on imported rare earth permanent magnets.
New Delhi, August 13: Coal India and Larsen & Toubro are among 20 companies that have submitted bids for the government’s ₹7,280-crore scheme to establish an integrated domestic manufacturing base for sintered NdFeB rare earth permanent magnets, according to the Ministry of Heavy Industries.
The scheme comes as India seeks to reduce its dependence on imported rare earth permanent magnets, which are critical components used in electric vehicles, wind turbines, advanced electronics, aerospace and defence applications.
The Ministry of Heavy Industries received the bids through the Central Public Procurement Portal (CPP) to select manufacturers for establishing integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities. The technical bids were opened on August 13 in the presence of participating bidders.
Apart from Coal India and Larsen & Toubro, the bidders include 20 Microns, Attero Recycling, BaRupOn – IRP Consortium, Jay Fe Cylinders, Keystone Infra Pvt. Ltd – Huebox Interiors Pvt. Ltd. (JV), Lohum Magnets & Energy Solutions, Midwest Energy Limited – Midwest Advanced Materials (JV), N.A.N. Magnetech and NEO Performance Materials (Singapore) PTE. LTD.
Other bidders are Nexon Geochem Private Limited, PrNd Metal and Magnets, Proterial (India) Ltd, Prozeal Green Energy, Ramp Metals & Minerals, Renew Private Ltd, Shankaranarayana Constructions, Solpro Greentech and Starteck Finance.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the REPM manufacturing scheme on November 26, 2025, with a financial outlay of ₹7,280 crore. The scheme was subsequently notified by the Ministry of Heavy Industries on December 15, 2025.
The ministry floated the Request For Proposal (RFP) on the CPP portal on March 20, 2026. A pre-bid conference was held on April 7, while August 12 was set as the deadline for submission of bids.
The scheme is designed to establish 6,000 Metric Tons Per Annum (MTPA) of integrated REPM manufacturing capacity in India. The capacity will be awarded to five beneficiaries through a global competitive bidding process, with each beneficiary eligible for up to 1,200 MTPA.
The programme will run for seven years from the date of award. This includes a two-year gestation period for setting up integrated manufacturing facilities, followed by five years of incentive disbursement linked to REPM sales.
Rare earth permanent magnets are among the most powerful magnets available and are essential for several strategic and high-growth industries. The government intends to develop the complete domestic value chain, from NdPr oxide to finished magnets, with the broader objective of reducing import dependence.
The initiative is expected to strengthen India’s domestic REPM manufacturing capabilities and improve the competitiveness of Indian manufacturers in global markets. It is also aimed at strengthening supply chains for domestic industries and supporting India’s Net Zero 2070 target.
The government views the scheme as part of its wider push to develop a technologically self-reliant and globally competitive industrial base. The initiative is also aligned with the broader Viksit Bharat @2047 vision.
