India invites bids under ₹7,280cr scheme for rare earth magnets.
Targets 6,000 MTPA capacity to cut China import dependence.
Incentives include ₹750cr capex support and ₹6,450cr sales-linked subsidy.
Magnets critical for EVs, wind energy, electronics and defence sectors.
The government has invited bids to set up integrated rare earth permanent magnet manufacturing plants under a ₹7,280 crore scheme, to build a domestic supply chain for one of the most strategically sensitive industrial inputs.
Rare Earth Permanent Magnets are 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," said the Ministry of Heavy Industries in a statement.
2 March 2026
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The subsidy programme, notified in December last year, is designed to reduce India's reliance on China for Neodymium-Iron-Boron. The Scheme is a first-of-its-kind initiative that aims to establish a total capacity of 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet manufacturing facilities in India.
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 a sales-linked incentive of ₹6,450 crore, with a limited assured supply of NdPr oxide from IREL (India) for the three lowest bidders.
Bids will be conducted through the Central Public Procurement Portal using a two-stage Least Cost System, covering a technical bid followed by a financial bid. Tender documents are available from 20th March, a pre-bid conference is scheduled for 7th April, and the deadline for submissions is 28th May, with technical bids to be opened the following day, the Ministry of Heavy Industries said.
The total duration of the scheme will be seven years, which includes two years of gestation period for setting up the manufacturing facilities and five years for incentive disbursement on the sale of sintered NdFeB REPM.
India possesses one of the world's largest rare earth reserves. But currently, China is the most dominant producer in this field, controlling over 90% of global production of sintered permanent magnets as of 2024–2025. China alone has the technical capacity to mine or refine them.
Last year, Beijing put strategic export restrictions on these magnets following trade tussle with Washington, triggering worldwide supply chain disruptions.
