MHI Receives 20 Bids for 6,000 MTPA Rare Earth Permanent Magnet Manufacturing Scheme with ₹7,280 Crore Outlay
The Ministry of Heavy Industries (MHI) has received 20 bids through a global tender on the CPP portal. The tender selects manufacturers to establish integrated sintered NdFeB rare earth permanent magnet (REPM) manufacturing facilities. Technical bids were opened on August 13, 2026, in the presence of the bidders.
The Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet on November 26, 2025, with a financial outlay of ₹7,280 crore. MHI notified the scheme on December 15, 2025. The request for proposal was floated on March 20, 2026, and the pre-bid conference was held on April 7, 2026. The last date for bid submission was August 12, 2026.
The scheme aims to establish a total of 6,000 MTPA of integrated REPM manufacturing capacity in India. The capacity will be allotted to five beneficiaries through global competitive bidding. Each beneficiary can be allotted up to 1,200 MTPA. The facilities cover the value chain from NdPr oxide to finished magnets.
The scheme runs for seven years from the date of award. This includes a two-year gestation period to set up the facility and five years of incentive disbursement on REPM sales.
REPMs are used in electric vehicles, wind turbines, high-end electronics, and aerospace and defence systems. Bidders include Larsen & Toubro Limited, Coal India Limited, Proterial (India) Limited, NEO Performance Materials (Singapore) PTE. LTD., Lohum Magnets & Energy Solutions Private Limited and Attero Recycling Private Limited.
