Date: 2026-03-20Category: Press ReleaseState: Union GovernmentCountry: India
Ministry of Heavy Industries invites bids through Global Tender for selection of beneficiaries to set up integrated Sintered Rare Earth Permanent Magnet manufacturing facilities of 6,000 MTPA capacity under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet
**Executive Summary**
The Ministry of Heavy Industries has issued a Global Tender to select beneficiaries for setting up 6,000 MTPA of integrated Sintered Rare Earth Permanent Magnet (REPM) manufacturing facilities in India. Backed by a ₹7,280 crore financial outlay, the bidding process is conducted via a two-stage Least Cost System (LCS) on the CPP Portal. Key deadlines include a pre-bid conference on April 7, 2026, and a final bid submission due date of May 28, 2026.
**Key Points / Main Content**
**Scheme Objectives and Capacity**
* The "Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet" aims to establish a total capacity of 6,000 Metric Tonnes Per Annum (MTPA) in India.
* The initiative seeks to build a complete value chain from NdPr oxide to finished magnets to reduce import dependence.
* The magnets produced are critical for electric vehicles, wind turbines, aerospace, high-end electronics, and defense systems.
**Financial Incentives and Allocation**
* Total financial outlay is ₹7,280 crore, divided into a ₹750 crore capital subsidy and ₹6,450 crore in sales-linked incentives.
* Individual beneficiaries will be allocated capacity ranging from 600 MTPA to 1,200 MTPA (in multiples of 100 MTPA).
* The three lowest bidders will receive a limited assured supply of NdPr oxide from IREL (India) Ltd.
**Bidding Process and Timeline**
* The selection follows a transparent two-stage process (Technical Bid and Financial Bid) through the online Central Public Procurement (CPP) Portal.
* Evaluation is based on the Least Cost System (LCS).
* **Tender Availability:** Starting March 20, 2026.
* **Pre-bid Conference:** April 7, 2026.
* **Bid Due Date:** May 28, 2026.
* **Technical Bid Opening:** May 29, 2026.
**Impact Analysis**
**Prospective Manufacturers / Bidders**
**Impact**
They gain access to significant capital subsidies and sales-linked incentives to establish high-tech manufacturing facilities in India.
**Action Required**
Submit bids through the CPP Portal by May 28, 2026, and participate in the pre-bid conference on April 7, 2026.
**IREL (India) Ltd.**
**Impact**
Designated as the supplier for NdPr oxide, providing a limited assured supply to support the operations of the three lowest bidders.
**Action Required**
Prepare to fulfill supply obligations of NdPr oxide to the successful lowest bidders under the scheme.
**Domestic Strategic Industries (EV, Defense, Aerospace)**
**Impact**
These sectors will benefit from a localized supply chain and reduced reliance on global imports for critical REPM components.
**Action Required**
None specified in the document, though they represent the end-market for the project's output.
Key Entities Referenced
Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet: A policy initiative with a ₹7,280 crore financial outlay aimed at establishing 6,000 MTPA capacity for integrated NdFeB REPM manufacturing in India through capital subsidies and sales-linked incentives.
Ministry of Heavy Industries: The nodal ministry responsible for implementing the scheme, releasing the Request for Proposal (RFP), and conducting the global tender process for selecting beneficiaries.
IREL (India) Ltd.: The entity designated to provide a limited assured supply of NdPr oxide, a critical raw material, to the three lowest bidders under the manufacturing scheme.
Ministry of Heavy Industries
Ministry of Heavy Industries invites bids through
Global Tender for selection of beneficiaries to set
up integrated Sintered Rare Earth Permanent
Magnet manufacturing facilities of 6,000 MTPA
capacity under the Scheme to Promote
Manufacturing of Sintered Rare Earth Permanent
Magnet
Bidding process to be held online through a transparent
Least Cost System (LCS) comprising two-stage process
through CPP Portal
Tender documents are available online from today (20th
March, 2026); Bid due date is 28th May, 2026; Technical Bids
shall be opened on 29th May, 2026
Posted On: 20 MAR 2026 10:25AM by PIB Delhi
The Ministry of Heavy Industries has released the Request for Proposal (RFP) for selection of
beneficiaries to set up integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing
facilities of 6,000 Metric Tonnes Per Annum (MTPA) capacity under the Scheme to Promote
Manufacturing of Sintered Rare Earth Permanent Magnet.
With this bidding process, prospective applicants can submit their bids to establish integrated sintered
NdFeB REPM manufacturing facilities in India and can be eligible for availing capital subsidy as well as
sales-linked incentives under the Scheme. The bidding will be conducted online through a transparent
Least Cost System (LCS) comprising two-stages (Technical Bid and Financial Bid) through Central Public
Procurement (CPP) Portal.
The tender documents are available from 20th March, 2026. Pre-bid conference shall be held on 7th April,
2026.The bid due date is 28th May, 2026 and the Technical bids shall be opened on 29th May, 2026.
On 26th November 2025, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the
Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet with a financial outlay of
Rs.7,280 crore. The Scheme is first-of-its-kind initiative aims to establish a total capacity of 6,000 Metric
Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet manufacturing facilities in India,
thereby enhancing self-reliance and positioning India as a key player in the global REPM market.Under the Scheme, each beneficiary will be allocated a capacity ranging between 600 MTPA and 1,200
MTPA (in multiples of 100 MTPA). The Scheme provides a capital subsidy of ₹750 crore and, sales-
linked incentive of ₹6,450 crore, with limited assured supply of NdPr oxide from IREL (India) Ltd. for the
three lowest bidders.
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. By building
complete value chain from NdPr oxide to finished magnets in India, the Scheme is expected to
significantly reduce import dependence in this sector.
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