13 August 2026·PIB

Ministry of Heavy Industries (MHI) receives 20 bids under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent (REPM)

In this note

1. At a Glance

Ministry of Heavy Industries (MHI) received 20 bids via Global Tender on the CPP (Central Public Procurement) Portal for setting up integrated Sintered NdFeB Rare Earth Permanent Magnet (REPM) manufacturing facilities [1].
Part of India's strategic push to cut import dependence on rare earth magnets, critical for EVs, renewable energy, electronics, and defence [3].
Falls under the Rs. 7,280 crore "Scheme to Promote Manufacturing of Sintered REPM", approved by the Union Cabinet [3].
High relevance for Prelims (scheme facts) and Mains GS-III (critical minerals, manufacturing, strategic autonomy).

On 13 August 2026, MHI announced it received 20 bids in response to its Global Tender for selecting REPM manufacturers, indicating strong industry response [1].
This follows an earlier extension of the bid submission timeline by MHI for the same tender [4].

26 November 2025: Union Cabinet approved the "Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM)" with a financial outlay of Rs. 7,280 crore [3].
MHI subsequently invited bids through a Global Tender for selection of beneficiaries to set up integrated REPM manufacturing facilities of 6,000 MTPA capacity [2].
20 March 2026: RFP released; 7 April 2026: pre-bid conference held.
Bid submission deadline was extended by MHI before finally closing on 12 August 2026, with technical bid opening on 13 August 2026 [4].
20 bids received, announced 13 August 2026 [1].

Parameter	Detail
Implementing Ministry	Ministry of Heavy Industries (MHI) [1]
Scheme Name	Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM) [1]
Cabinet Approval Date	26 November 2025 [3]
Total Financial Outlay	Rs. 7,280 crore [3]
Break-up	Sales-Linked Incentive: Rs. 6,450 crore; Capital Subsidy: Rs. 750 crore [3]
Target Capacity	6,000 Metric Tonnes Per Annum (MTPA) [2][3]
No. of Beneficiaries Envisaged	5, selected via global competitive bidding [3]
Procurement Mode	Global Tender via CPP Portal [1][2]
Bids Received	20 (as of 13 August 2026) [1]
Magnet Type	Sintered NdFeB (Neodymium-Iron-Boron) [1]

Economic

Aims to reduce import dependence for a critical input used across EVs, wind turbines, electronics, defence — reducing India's exposure to supply shocks (notably from China's export curbs) [3].
Employment generation and strengthening of domestic value chains in a high-tech manufacturing niche [3].

Strategic/Geopolitical

Rare earth magnets are a critical mineral dependency; China dominates global refining/processing — scheme is a de-risking/self-reliance (Atmanirbhar Bharat) measure [3].

Scientific/Technological

Focus on sintered NdFeB technology — the highest-performance class of permanent magnets, used in EV motors and wind turbine generators [1].

Administrative/Governance

Uses global competitive bidding and transparent e-procurement via CPP Portal, with a formal RFP-pre-bid-bid submission-technical bid opening cycle, including a timeline extension showing responsiveness to industry feedback [4].

26 Nov 2025: Cabinet approval of Rs. 7,280 crore scheme [3].
Post-approval: MHI issued Global Tender inviting bids for 6,000 MTPA integrated REPM manufacturing capacity [2].
MHI extended the bid submission timeline for the tender in response to industry requests [4].
12-13 August 2026: Bid submission closed and technical bids opened; 20 bids received [1].

The REPM scheme is implemented by the Ministry of Heavy Industries, not Mines or MSME [1].
Cabinet approved the scheme on 26 November 2025 [3].
Total outlay: Rs. 7,280 crore [3].
Split: Sales-Linked Incentive – Rs. 6,450 crore; Capital Subsidy – Rs. 750 crore [3].
Target manufacturing capacity: 6,000 MTPA of integrated Sintered REPM [2][3].
Five beneficiaries to be selected via global competitive bidding [3].
Selection mode: Global Tender on the CPP (Central Public Procurement) Portal [1][2].
20 bids received as of 13 August 2026 [1].
Magnet type targeted: Sintered NdFeB (Neodymium-Iron-Boron) [1].
MHI earlier extended the bid submission deadline for this tender [4].
Sectors expected to benefit: electric mobility, renewable energy, electronics, defence [3].

GS-III: Indian Economy — industrial policy, infrastructure; Science & Technology — critical minerals, indigenization; also touches Security (import dependence, critical mineral supply chains).
Syllabus headings: "Industrial Policy," "Infrastructure," "Awareness in the fields of IT, Space, Computers, robotics, Nano-technology," "Security challenges and their management in border areas — linkages of organized crime with terrorism" (broader critical minerals security angle).
Sample question stems:
"Discuss the strategic significance of rare earth permanent magnets for India's manufacturing and defence sectors. Evaluate the effectiveness of the REPM Scheme in achieving self-reliance."
"China's dominance in rare earth processing poses a critical vulnerability for India's clean energy and defence manufacturing. Discuss with reference to recent government initiatives."
"Examine the role of production/sales-linked incentive schemes in building domestic manufacturing capacity in critical and emerging technology sectors."

Critical Minerals Mission / National Critical Mineral Mission — broader policy umbrella for rare earths and other strategic minerals.
Production Linked Incentive (PLI) Schemes — comparable incentive-based manufacturing promotion architecture.
China's rare earth export controls (2025-26) — the geopolitical trigger for India's push.
KABIL (Khanij Bidesh India Limited) — overseas critical mineral sourcing arm.
Electric Vehicle (EV) manufacturing ecosystem (FAME, PM E-DRIVE) — key end-use demand driver for REPM.
Atmanirbhar Bharat Abhiyan — overarching self-reliance framework.
Mines and Minerals (Development and Regulation) Amendment Act, 2023 — legal base enabling private mining of critical/rare earth minerals.

Confusing implementing ministry — it is Ministry of Heavy Industries, not Ministry of Mines (which handles rare earth mineral extraction/exploration).
Mixing up the Cabinet approval date (26 Nov 2025) with the bid announcement/tender dates (2026) — these are distinct milestones.
Confusing total outlay (Rs. 7,280 crore) with the incentive-only component (Rs. 6,450 crore) — the outlay also includes Rs. 750 crore capital subsidy.
Assuming the scheme targets rare earth mining/extraction — it actually targets downstream sintered magnet manufacturing.
Conflating this scheme with the general PLI scheme for Advanced Chemistry Cell (ACC) batteries or other critical mineral schemes — REPM is a standalone, magnet-specific scheme.