Ministry of Heavy Industries invites bids through Global Tender for selection of beneficiaries to set up integrated Sintered Rare Earth Permanent Magnet manufacturing facilities of 6,000 MTPA capacity under the Scheme to...

1. At a Glance

Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) — Cabinet-approved production-cum-capital-subsidy scheme of the Ministry of Heavy Industries (MHI) to build 6,000 MTPA integrated NdFeB magnet capacity in India [S1][S2].
Targets strategic self-reliance (Atmanirbhar Bharat) in a critical input for EVs, wind turbines, electronics, aerospace and defence — sectors where China currently dominates the global REPM supply chain [S1].

On 20 March 2026, MHI released the Global Tender / RFP to select beneficiaries; bids due 28 May 2026, technical bids opened 29 May 2026 [S2].
Pre-bid conference held on 7 April 2026 drew positive industry response [S3].

Cabinet approval: ₹7,280 crore outlay scheme cleared earlier in 2025-26 cycle [S1].
Rationale: China processes the bulk of global rare earths; export controls on Nd-Fe-B magnets (2025) exposed Indian EV / wind-energy supply chains.
Builds on India's broader rare-earth strategy — exploration push via IREL (India) Ltd. and the National Critical Minerals Mission [S1].

Nodal Ministry: Ministry of Heavy Industries (MHI) [S2].
Scheme outlay: ₹7,280 crore = ₹750 cr capital subsidy + ₹6,450 cr sales-linked incentive [S1][S2].
Magnet chemistry: Sintered NdFeB (Neodymium-Iron-Boron) Rare Earth Permanent Magnet [S2].
Aggregate capacity: 6,000 MTPA (Metric Tonnes Per Annum) [S2].
Beneficiaries: max 5 entities, up to 1,200 MTPA each [S2].
Raw material support: assured supply of NdPr oxide from IREL (India) Ltd. for the three lowest bidders [S2].
Bidding mode: online Least Cost System (LCS), two-stage (Technical + Financial), via Central Public Procurement (CPP) Portal [S2].
Scope: integrated chain — rare-earth oxides → metal/alloy → finished sintered magnets [S1].

Economic: Reduces import dependence on China for NdFeB magnets used in EV traction motors, wind generators, consumer electronics; sales-linked incentive (PLI-style) ties subsidy to actual output [S1][S2].
Geopolitical / Strategic: Counters Chinese export restrictions on rare-earth magnets (2025); aligns India with G7 / Quad critical-minerals partnerships for resilient supply chains [S1].
Scientific / Technological: Sintered NdFeB is the highest energy-density permanent magnet — sintering, grain-boundary diffusion, heavy-rare-earth substitution are the tech frontiers [S2].
Environmental: Indigenous magnets are an enabler of EV transition + renewable energy and the Net-Zero 2070 target [S1].
Administrative: Transparent LCS bidding on CPP Portal; raw-material concession (NdPr from IREL) reserved for L1–L3 to incentivise aggressive bids [S2].

2025: Cabinet approves ₹7,280 cr REPM scheme [S1].
20 Mar 2026: RFP / Global Tender notified by MHI [S2].
7 Apr 2026: Pre-bid conference held — positive industry response [S3].
28 May 2026: Bid submission deadline; 29 May 2026: technical bid opening [S2].

Nodal ministry for REPM scheme: Ministry of Heavy Industries (NOT Mines / MNRE) [S2].
Total outlay: ₹7,280 crore [S1].
Capital subsidy component: ₹750 crore; sales-linked incentive: ₹6,450 crore [S1].
Target capacity: 6,000 MTPA of sintered NdFeB magnets [S2].
Maximum 5 beneficiaries, each up to 1,200 MTPA [S2].
Raw material (NdPr oxide) assured supply by IREL (India) Ltd. to the three lowest bidders [S2].
Bidding method: Least Cost System (LCS), two-stage, via CPP Portal [S2].
RFP issue date: 20 March 2026; bid due 28 May 2026 [S2].
Magnet chemistry: Neodymium-Iron-Boron (NdFeB) sintered magnets [S2].
End-use sectors: EVs, wind energy, electronics, aerospace, defence [S1].

GS-III: Indian Economy — Industrial policy; Science & Tech — indigenisation of critical inputs; Energy / Environment — EV & renewables; Internal/External security — supply-chain resilience.
GS-II: Government schemes; India–China economic relations.
Probable stems:
"Critical minerals are the new oil." Discuss India's institutional response, with reference to the Sintered REPM scheme.
Evaluate the design of sales-linked incentive schemes (PLI-type) for strategic sectors using the REPM scheme as a case study.
Examine the role of IREL (India) Ltd. and the Ministry of Heavy Industries in building an integrated rare-earth value chain.

National Critical Minerals Mission, 2025 — upstream complement to this downstream scheme.
KABIL (Khanij Bidesh India Ltd.) — overseas critical mineral acquisition.
IREL (India) Ltd. — PSU under DAE handling monazite / rare earths.
PLI Schemes (Auto, ACC battery, Specialty Steel) — comparable incentive architecture.
FAME-II / PM E-Drive — demand-side EV push complementing magnet supply.
MMDR Amendment Act, 2023 — auction of critical & strategic minerals.
Quad Critical & Emerging Tech / Minerals Security Partnership — geopolitics of rare earths.
National Wind Energy Mission — downstream consumer of NdFeB magnets.

Wrong ministry: Scheme is under MHI, not Ministry of Mines or MNRE [S2].
Confusing capacity: aggregate is 6,000 MTPA, per-beneficiary cap is 1,200 MTPA (max 5 entities) [S2].
Outlay split confusion: ₹750 cr is capital subsidy, ₹6,450 cr is sales-linked incentive — not vice-versa [S1].
Magnet type: Scheme targets Sintered NdFeB specifically — not SmCo, not bonded magnets [S2].
IREL benefit: NdPr oxide supply is reserved only for the three lowest (L1–L3) bidders, not all five beneficiaries [S2].

[S1] Cabinet Approves Rs.7,280 Crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2194684 — (tier: 1)
[S2] MHI invites bids through Global Tender for 6,000 MTPA Sintered REPM facilities — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2242811 — (tier: 1)
[S3] Pre-bid conference organised by MHI for prospective bidders — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2249728 — (tier: 1)