Summary:
India’s ₹7,280-crore rare earth magnet scheme has attracted 20 bids to build domestic NdFeB magnet capacity. The scheme targets 6,000 MTPA of capacity for EVs, renewable energy, electronics and defence. Five bidders will be selected and supported with incentives to reduce import dependence.
India’s plan to build a domestic rare earth permanent magnet industry has attracted 20 bids, highlighting strong corporate interest in a strategically important manufacturing segment. The Ministry of Heavy Industries opened technical bids on August 13, 2026 under the ₹7,280-crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets.
The scheme targets 6,000 metric tonnes per annum (MTPA) of integrated Sintered NdFeB magnet capacity, reducing India’s dependence on imported magnets used across electric vehicles, renewable energy, electronics, aerospace and defence.
How the ₹7,280-Crore Scheme Works
The Union Cabinet approved the programme on November 26, 2025. Of the ₹7,280-crore outlay, ₹750 crore is earmarked for capital subsidy and ₹6,450 crore for sales-linked incentives.
Five beneficiaries will eventually be selected through a global competitive bidding process. Each can receive between 600 MTPA and 1,200 MTPA of capacity, with the overall industry target capped at 6,000 MTPA. Limited assured supply of NdPr oxide from IREL will also be available to the three lowest bidders.
The programme will operate for 7 years from the date of award, including 2 years to establish manufacturing facilities and 5 years of incentive payments on REPM sales.
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Who Are the 20 Bidders?
| S. No. | Name of the company |
| 1 | 20 Microns Limited |
| 2 | Attero Recycling Private Limited |
| 3 | BaRupOn – IRP Consortium |
| 4 | Coal India Limited |
| 5 | Jay Fe Cylinders Limited |
| 6 | Keystone Infra Pvt. Ltd – Huebox Interiors Pvt. Ltd. (JV) |
| 7 | Larsen & Toubro Limited |
| 8 | Lohum Magnets & Energy Solutions Private Limited |
| 9 | Midwest Energy Limited – Midwest Advanced Materials (JV) |
| 10 | N.A.N. Magnetech Private Limited |
| 11 | NEO Performance Materials (Singapore) PTE. LTD. |
| 12 | Nexon Geochem Private Limited |
| 13 | PrNd Metal and Magnets Pvt. Ltd. |
| 14 | Proterial (India) Limited |
| 15 | Prozeal Green Energy Limited |
| 16 | Ramp Metals & Minerals Private Limited |
| 17 | Renew Private Limited |
| 18 | Shankaranarayana Constructions Limited |
| 19 | Solpro Greentech Private Limited |
| 20 | Starteck Finance Limited |
The RFP was issued on March 20, followed by a pre-bid conference on April 7. The final deadline for bids was August 12, with technical bids opened the following day.
Why Rare Earth Magnets Matter for EVs and Defence
Sintered NdFeB magnets are among the world’s strongest permanent magnets. Their high power-to-weight ratio makes them essential for EV traction motors, wind turbines, high-end electronics, aerospace systems and defence equipment.
The scheme seeks to establish the complete domestic value chain from NdPr oxide to finished magnets. India currently has access to rare earth resources and oxide production, but large-scale conversion into metals, alloys and finished high-performance magnets remains a major supply-chain gap.
