Date: 2026-04-07Category: Press ReleaseState: Union GovernmentCountry: India
Pre-bid conference organised by Ministry of Heavy Industries (MHI) for prospective bidders under ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet’ receives positive industry response
**Executive Summary**
The Ministry of Heavy Industries (MHI) held a pre-bid conference on April 7, 2026, for its ₹7,280 crore scheme to establish 6,000 MTPA of integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities. The scheme aims to reduce import dependence and bolster India’s domestic manufacturing ecosystem for critical sectors like electric vehicles and defense. Key upcoming deadlines include a query submission date of April 22, 2026, and a final bid submission date of May 28, 2026.
**Key Points / Main Content**
**Project Scope and Capacity**
* The scheme targets a total manufacturing capacity of 6,000 MTPA for integrated sintered NdFeB magnets.
* A maximum of five entities will be selected through the bidding process.
* Each selected entity can set up facilities with a capacity of up to 1,200 MTPA.
* Manufacturing must be "integrated," covering the full conversion process: rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.
**Bidding and Selection Process**
* The bidding process is conducted online through the CPP Portal using a transparent two-cover system (Technical Bid and Financial Bid).
* Selection is based on the Least Cost System (LCS) mechanism for bidders who meet the technical qualifications.
* Bidders are required to fulfill specific eligibility criteria and submit a Detailed Project Report (DPR) in the format provided in the Request for Proposal (RFP).
**Strategic Objectives**
* The initiative is designed to strengthen domestic manufacturing capabilities and reduce reliance on imports.
* REPMs are identified as vital components for electric vehicles, renewable energy, electronics, aerospace, and defense applications.
* The scheme intends to develop a globally competitive REPM ecosystem within India.
**Impact Analysis**
**Prospective Bidders / Manufacturing Entities**
**Impact**
Manufacturers have the opportunity to access a portion of the ₹7,280 crore outlay to establish high-capacity, integrated REPM production facilities in a strategically critical sector.
**Action Required**
Interested parties must submit any queries via email by April 22, 2026, and complete the online bidding process on the CPP Portal, including the submission of a Detailed Project Report, by the May 28, 2026, deadline.
**Ministry of Heavy Industries (MHI)**
**Impact**
The Ministry is responsible for overseeing the transparent selection of up to five manufacturers and managing the scheme's implementation to ensure the national manufacturing target of 6,000 MTPA is met.
**Action Required**
The Ministry must address queries raised by bidders and evaluate the Technical and Financial bids under the Least Cost System (LCS) mechanism following the submission deadline.
**Domestic Industrial Sectors (EV, Defense, Aerospace, Renewable Energy)**
**Impact**
These sectors will benefit from a robust, domestic supply chain of REPMs, leading to reduced import dependence and improved competitiveness in global markets.
**Action Required**
No direct action is required at this stage, though these sectors will be the primary end-users of the ecosystem developed under the scheme.
Key Entities Referenced
Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet: A government initiative with a ₹7,280 Crore outlay aimed at establishing integrated manufacturing facilities for Rare Earth Permanent Magnets (REPM) in India.
Ministry of Heavy Industries (MHI): The primary government ministry responsible for organizing the pre-bid conference and managing the selection of manufacturers under the REPM scheme.
Request for Proposal (RFP) for Selection of Manufacturers: The specific policy tender issued to select entities for establishing 6,000 MTPA of integrated sintered NdFeB rare earth permanent magnet manufacturing facilities.
Ministry of Heavy Industries
Pre-bid conference organised by Ministry of
Heavy Industries (MHI) for prospective bidders
under ‘Scheme to Promote Manufacturing of
Sintered Rare Earth Permanent Magnet’ receives
positive industry response
MHI had earlier issued an RFP on CPP portal for Selection of
Manufacturers for Establishing 6,000 MTPA of Integrated
Sintered NdFeB Rare Earth Permanent Magnet
Manufacturing Facilities under the Scheme with an outlay of
₹7,280 Crore
Bidding process to be held online through a transparent two
cover system Technical Bid and Financial Bid under the Least
Cost System (LCS) mechanism through CPP Portal
Tender documents are available on the CPP portal since 20th
March 2026 and Bid due date is 28th May 2026
Posted On: 07 APR 2026 4:26PM by PIB Delhi
The pre-bid conference organised by the Ministry of Heavy Industries (MHI) for prospective bidders for
the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet’ has received wide
participation and interest from at least 25 companies attending the conference. The conference was
organised by MHI today i.e. on 7th April 2026 at India Habitat Centre in New Delhi. Earlier MHI released
the Request for Proposal (RFP) on 20th March 2026, inviting bidders for setting up integrated Rare Earth
Permanent Magnet (REPM) manufacturing facilities in India for a total manufacturing capacity of 6000
MTPA with a Scheme outlay of ₹7,280 Crore.A detailed presentation was made to the prospective bidders covering the Scheme contours, major
provisions of RFP and procedural aspects of the bidding process. During the pre-bid conference, the
queries raised by the prospective bidders were addressed. The participants were informed that the last
date to submit their queries by way of e-mail (as per details provided in RFP) is 22nd April 2026.
The participants were also informed that the bidding will be held online through a transparent two stage
process, under the Least Cost System (LCS) mechanism through CPP Portal. The last date for submitting
the bids is 28th May 2026.
Key features of the selection process include fulfilment of the eligibility criteria, submission of a Detailed
Project Report (DPR) as per format provided in RFP and LCS based selection for technically qualified
bidders. The Government will select maximum of 5 (five) entities through the bidding process, with each
entity setting up facilities of up to 1,200 MTPA, aggregating to a total of up to a maximum capacity of
6,000 MTPA.
REPMs are one of the strongest types of permanent magnets and are vital for electric vehicles, renewable
energy, electronics, aerospace, and defence applications. The Scheme will support the creation of
integrated REPM manufacturing facilities, PM Indiainvolving conversion of rare earth oxides to
metals, metals to alloys, and alloys to finished REPMs.
This Scheme is expected to play a key role in strengthening domestic manufacturing capabilities,
reducing import dependence, and supporting the development of a robust and globally competitive
REPM ecosystem in India.
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TPJ
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