New Delhi: The Ministry of Heavy Industries on Friday invited bids through a global tender for selection of beneficiaries to set up integrated sintered rare earth permanent magnet manufacturing facilities with a combined capacity of 6,000 metric tonnes per annum (MTPA) under the scheme to promote manufacturing of sintered rare earth permanent magnets.
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The ministry said the bidding process will be conducted online through a transparent Least Cost System, or LCS, in a two-stage process comprising technical and financial bids on the Central Public Procurement portal.
Tender documents are available from March 20, the pre-bid conference will be held on April 7, the bid due date is May 28, and technical bids will be opened on May 29.
The scheme, approved by the Union Cabinet on November 26, 2025, carries a financial outlay of Rs 7,280 crore and aims to create a total integrated manufacturing capacity of 6,000 MTPA in India.
Under the scheme, each beneficiary will be allotted capacity in the range of 600 MTPA to 1,200 MTPA, in multiples of 100 MTPA. The ministry said the support package includes a capital subsidy of Rs 750 crore and a sales-linked incentive of Rs 6,450 crore.
It also provides limited assured supply of NdPr oxide from IREL (India) Ltd for the three lowest bidders.
The ministry said the scheme is the first of its kind and is intended to establish an integrated rare earth permanent magnet ecosystem in India, from NdPr oxide to finished magnets. It said the move is meant to enhance self-reliance and position India as a key player in the global REPM market.
Rare earth permanent magnets are among the most powerful magnets in the world and are widely used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems.
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By building the complete value chain domestically, the scheme is expected to significantly reduce import dependence in this sector, the ministry said.
The global tender opens the way for industry players to bid for beneficiary selection under a policy framework that combines capital support, sales-linked incentives and limited raw material assurance to encourage investment in a strategically important manufacturing segment.
