The Ministry of Heavy Industries (MHI) has received 20 bids through the CPP portal for the selection of manufacturers to establish integrated sintered NdFeB rare earth permanent magnet manufacturing facilities under the "Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM)". The Union Cabinet chaired by Prime Minister Narendra Modi approved this scheme on November 26, 2025, with a financial outlay of Rs. 7,280 crore, and the scheme notification was issued by MHI on December 15, 2025.
The Request For Proposal was floated on the CPP portal on March 20, 2026, with a pre-bid conference held on April 7, 2026. The technical bids were opened on August 13, 2026, in the presence of bidders at MHI, following the August 12, 2026 deadline for bid submission. This 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.
The scheme envisions allocating the total capacity to five beneficiaries through a global competitive bidding process, with each beneficiary allotted up to 1,200 MTPA of capacity. The total duration of the scheme is 7 years from the date of award, including a 2-year gestation period for setting up the integrated REPM manufacturing facility and 5 years for incentive disbursement on the sale of REPM.
Rare Earth Permanent Magnets are among the most powerful magnets globally and are widely used in electric vehicles, wind turbines, high-end electronics, aerospace and defense systems. By building a complete value chain from NdPr oxide to finished magnets in India, the scheme is expected to significantly reduce import dependence, secure the REPM supply chain for domestic industries, and support India's Net Zero 2070 commitment while enhancing global competitiveness in line with the Viksit Bharat @2047 vision.