Rare earth magnet scheme draws 25+ firms to pre-bid meeting; bids due 28 May
The Ministry of Heavy Industries held a pre-bid conference on 7 April 2026 for the ₹7,280 crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, which aims for 6,000 MTPA of integrated NdFeB magnet capacity.
Summary
The Ministry of Heavy Industries held a pre-bid conference in New Delhi on 7 April 2026 for the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, attended by at least 25 companies. The scheme, with an outlay of ₹7,280 crore, seeks integrated sintered NdFeB rare earth permanent magnet (REPM) facilities with a total capacity of 6,000 tonnes per annum, covering conversion of rare earth oxides to metals, metals to alloys and alloys to finished magnets. The government will select at most five entities, each setting up up to 1,200 MTPA, through online two-stage bidding under the Least Cost System on the CPP Portal. The RFP was issued on 20 March 2026 and bids are due by 28 May 2026. REPMs are used in electric vehicles, renewable energy, electronics, aerospace and defence.
Key facts
- Scheme
- Promote Manufacturing of Sintered Rare Earth Permanent Magnets
- Outlay
- ₹7,280 crore
- Capacity
- 6,000 MTPA total; up to 5 entities × 1,200 MTPA
- Magnet type
- Integrated sintered NdFeB
- Bidding
- Least Cost System, CPP Portal; bids due 28 May 2026
Practice MCQs 3 questions
What is the outlay of the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets?
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Correct answer: B — ₹7,280 crore
The Ministry of Heavy Industries said the scheme has an outlay of ₹7,280 crore.
Consider the following statements about the rare earth permanent magnet scheme: 1. The government will select a maximum of five entities through bidding. 2. Each selected entity can set up facilities of up to 1,200 MTPA, adding up to a maximum of 6,000 MTPA. Which of the statements given above is/are correct?
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Correct answer: C — Both 1 and 2
Both are correct: MHI said at most five entities will be selected, each with up to 1,200 MTPA, for a total of up to 6,000 MTPA.
The rare earth permanent magnet facilities sought under the ₹7,280 crore scheme are for which type of magnet?
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Correct answer: D — Sintered NdFeB
The RFP is for integrated sintered NdFeB (neodymium–iron–boron) rare earth permanent magnet manufacturing facilities.