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India's Rs 7,280 Crore Rare Earth Magnet Scheme Attracts 25 Firms in Pre-Bid Meet

The Ministry of Heavy Industries conducted a pre-bid conference for its Rs 7,280-crore scheme to promote the manufacturing of sintered rare earth permanent magnets (REPMs), with 25 companies in attendance. The scheme aims to establish integrated manufacturing facilities with a total capacity of 6,000 metric tonnes per annum, covering the entire value chain from raw materials to finished magnets. These magnets are crucial components for electric vehicles, renewable energy, electronics, and defence applications. The initiative is designed to strengthen India's domestic manufacturing capability and reduce reliance on imports in this strategic sector.

Key Points: Rs 7,280 Crore Rare Earth Magnet Manufacturing Scheme Pre-Bid

  • 25 companies attended pre-bid
  • Scheme outlay is Rs 7,280 crore
  • Aims for 6,000 MTPA magnet capacity
  • Supports full value chain from ore to finished magnets
  • Critical for EVs, renewables, and defence
2 min read

Pre-bid conference for Rs 7,280-crore rare earth manufacturing scheme conducted, 25 firms join

25 firms join pre-bid conference for India's scheme to boost domestic rare earth permanent magnet manufacturing, critical for EVs and defence.

"bolster domestic manufacturing, reduce import dependence, and create a globally competitive REPM ecosystem - Ministry of Heavy Industries"

New Delhi, April 7

The Ministry of Heavy Industries on Tuesday organised a pre-bid conference here for prospective bidders under the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets', drawing participation from at least 25 companies.

During the conference, ministry officials made detailed presentations on the scheme's contours, key RFP provisions, and procedural aspects of the bidding process.

In the event, participant queries were addressed, and bidders were informed that the last date to submit queries via email is 22 April 2026.

The bidding process will be conducted online in a transparent two-stage manner under the Least Cost Selection (LCS) mechanism via the CPP Portal, with the final bid submission deadline set for 28 May 2026, according to the government.

Key selection criteria include fulfilment of eligibility requirements, submission of a Detailed Project Report (DPR) as per RFP guidelines, and LCS-based selection of technically qualified bidders, it said.

In addition, a maximum of five entities will be selected, each establishing facilities of up to 1,200 MTPA, cumulatively reaching the 6,000 MTPA target.

The MHI had earlier released the Request for Proposal (RFP), inviting bids to set up integrated REPM manufacturing facilities in India with a total capacity of 6,000 metric tonnes per annum (MTPA) and a scheme outlay of Rs 7,280 crore.

REPMs, among the strongest permanent magnets, are critical for electric vehicles, renewable energy, electronics, aerospace, and defence applications.

The scheme supports the establishment of integrated facilities, covering the entire value chain from rare earth oxides to metals, alloys, and finished REPMs.

MHI said the initiative is expected to bolster domestic manufacturing, reduce import dependence, and create a globally competitive REPM ecosystem in India.

Earlier in the Parliament session, Union Minister Dr. Jitendra Singh said that India holds rare earth oxide resources of approximately 8.52 million tonnes.

The minister also stated that the Atomic Minerals Directorate for Exploration and Research has identified 7.23 million tonnes of total rare earth oxide equivalent contained in monazite deposits across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra.

An additional 1.29 million tonnes of rare earth resources have been identified in hard rock terrains in Gujarat and Rajasthan, according to him.

- IANS

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Reader Comments

S
Sarah B
Great initiative, but the timeline seems very long. 2026 for final bids? We need to move faster to capitalize on the global EV boom. The pre-bid conference is a good start for clarity, though.
P
Priya S
Finally tapping into our own resources! 8.52 million tonnes is a huge number. This can create so many jobs in states like Odisha, Andhra, and Tamil Nadu. Hope the environmental impact of mining is managed responsibly.
V
Vikram M
The focus on the entire value chain—from oxides to finished magnets—is the key. Piecemeal efforts fail. This integrated approach under the PLI scheme can make us a global player. Let's see if the selected 5 firms have the real technical capability.
R
Rohit P
Transparency via online CPP portal is good. But "Least Cost Selection" sometimes compromises on quality. For such a critical tech, technical parameters should carry more weight than just cost. Hope the DPR guidelines are stringent.
K
Kavya N
As someone in the renewables sector, this is very promising. Reliable domestic supply of REPMs can reduce the cost of wind turbines and make our green energy transition more sustainable and secure. Good move! 👏

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