The government has received 20 bids from domestic and global companies to set up integrated sintered neodymium-iron-boron (NdFeB) rare earth permanent magnet (REPM) manufacturing facilities in India, marking a major step towards reducing the country’s import dependence for critical magnets.
The Ministry of Heavy Industries (MHI) opened the technical bids on Thursday after receiving the applications through the government’s e-procurement portal. The last date for submission was August 12.
The bidders include Larsen & Toubro, Coal India, 20 Microns, Attero Recycling, Lohum Magnets & Energy Solutions, Prozeal Green Energy, NEO Performance Materials of Singapore, Proterial (India), PrNd Metal and Magnets, and Midwest Energy-Midwest Advanced Materials JV, among others.
The scheme, approved by the Union Cabinet in November 2025 with a financial outlay of Rs 7,280 crore, seeks to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity in India.
Under the scheme, five beneficiaries will be selected through global competitive bidding, with each beneficiary eligible for up to 1,200 MTPA of capacity.
The scheme has a seven-year duration, including a two-year gestation period for setting up the manufacturing facilities and five years of incentives linked to the sale of REPMs.
The Request for Proposal was floated on March 20, 2026, while the pre-bid conference was held on April 7.
Rare earth permanent magnets are critical components in electric vehicles, wind turbines, advanced electronics, aerospace and defence systems. The scheme seeks to establish an integrated domestic value chain extending from neodymium-praseodymium (NdPr) oxide to finished magnets.
The government expects the initiative to strengthen domestic supply chains for critical industries, enhance India’s competitiveness in the global REPM market and support its net-zero emissions target for 2070.