The Ministry of Heavy Industries (MHI) recently conducted pre-bid consultations for its ambitious scheme to establish a domestic manufacturing ecosystem for Sintered Rare Earth Permanent Magnets (REPM). The meeting saw significant industry interest, with at least 25 companies participating.
Key Highlights of the Scheme
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Financial Outlay: The government has allocated ₹7,280 crore to incentivize the production of these critical components.
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Production Targets: The MHI aims to support an annual production capacity of 6,000 metric tonnes (MTPA).
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Selection Process: Up to five companies will be selected via an online bidding process using the Least Cost System (LCS) mechanism. Each entity will be responsible for a capacity of up to 1,200 MTPA.
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Integrated Facilities: The scheme focuses on end-to-end domestic production, covering the conversion of rare earth oxides into metals, then into alloys, and finally into finished magnets.
Why It Matters
Rare Earth Permanent Magnets are indispensable for modern high-tech industries. By fostering domestic production, India aims to:
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Reduce Import Dependence: Currently, India relies heavily on imports for these magnets, which are essential for Electric Vehicles (EVs), renewable energy (wind turbines), aerospace, and defense.
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Strategic Autonomy: Strengthening the supply chain for rare earth elements is a critical step toward self-reliance in the electronics and green energy sectors.
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Global Competitiveness: The initiative is designed to build an ecosystem that can eventually compete on a global scale.
Timeline
The Request for Proposal (RFP) was released in March 2026, and the deadline for bid submissions is set for May 28, 2026. Selections are expected to follow shortly after the bidding window closes.
