Govt's Rs 7,280 crore rare earth magnet scheme draws 20 bids, including L&T, Coal India, ReNew

The government's Rs 7,280-crore scheme to promote domestic manufacturing of rare earth permanent magnets has received 20 bids, including from Larsen & Toubro, Coal India and ReNew, for setting up integrated manufacturing facilities in the country, the Ministry of Heavy Industries said on Thursday.

The bids were received through a global tender floated for the selection of manufacturers under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM), according to a ministry press release. The Ministry of Heavy Industries (MHI) said it received the 20 bids through the Global Tender on the CPP portal for selecting manufacturers to establish integrated Sintered NdFeB Rare Earth Permanent Magnet manufacturing facilities.

Also read: Critical minerals being prioritised in trade, investment engagements: Govt tells Parliament


Besides L&T, Coal India and ReNew, the other bidders include Attero Recycling, 20 Microns, Lohum Magnets & Energy Solutions, NEO Performance Materials (Singapore), Proterial (India) and Prozeal Green Energy.

Scheme details

The scheme aims to establish a total domestic manufacturing capacity of 6,000 metric tonnes per annum (MTPA) of integrated rare earth permanent magnets. This capacity will be allocated among five beneficiaries selected through a global competitive bidding process, with each beneficiary eligible for up to 1,200 MTPA.

"The Scheme, a first-of-its-kind initiative, aims to establish a total capacity of 6,000 Metric Tons Per Annum (MTPA) of integrated Rare Earth Permanent Magnet manufacturing facilities in India," the ministry said.

The Union Cabinet approved the scheme in November 2025 with an outlay of Rs 7,280 crore, and the Ministry of Heavy Industries floated the request for proposal in March this year. The deadline for submitting bids was August 12, and technical bids were opened on Thursday in the presence of bidders.

Rare earth permanent magnets are critical components used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems. Through the scheme, the government is seeking to build an integrated domestic supply chain covering the entire production process, from neodymium-praseodymium (NdPr) oxide to finished magnets.

"By building a complete value chain from NdPr oxide to finished magnets in India, the Scheme is expected to significantly reduce import dependence in this sector," the ministry said.

Also read: Critical minerals, strategic stakes: Inside India's bid to break China's supply chain stranglehold

India currently relies heavily on imports, particularly from China, for rare earth magnets a dependence that has drawn policy attention amid recent global supply-chain disruptions in critical minerals.

The scheme will run for seven years from the date of award, including a two-year period for setting up manufacturing facilities and five years for incentive disbursement on the sale of rare earth permanent magnets. The government expects domestic manufacturing under the programme to strengthen the supply of critical magnets to industries including electric mobility, renewable energy, electronics and defence.

With ANI inputs