Govt invites global bids for rare earth magnet manufacturing under ₹7,280-crore scheme

The ministry has issued a Request for Proposal (RFP) for selection of beneficiaries to establish integrated sintered NdFeB (neodymium-iron-boron) rare earth permanent magnet manufacturing units, according to an official statement.

The bidding process will be conducted online through a transparent Least Cost System (LCS) in a two-stage format via the Central Public Procurement (CPP) portal.

Tender documents have been made available from March 20, 2026.

A pre-bid conference is scheduled for April 7, while the last date for submission of bids is May 28.

Technical bids will be opened on May 29.

The prospective applicants can bid to set up manufacturing facilities and avail capital subsidy as well as sales-linked incentives under the scheme.

Under the scheme, individual beneficiaries will be allocated capacity ranging from 600 MTPA to 1,200 MTPA, in multiples of 100 MTPA.

The scheme provides a capital subsidy of ₹750 crore and sales-linked incentives worth ₹6,450 crore.

The three lowest bidders will be assured limited supply of neodymium-praseodymium (NdPr) oxide from IREL (India) Ltd, the only company in India currently engaged in mining rare earth ores and refining them into rare earth oxides.

Rare earth permanent magnets are among the most powerful magnets and are widely used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems.

India currently meets most of its demand for these magnets through imports, even as consumption is projected to double between 2025 and 2030.