The Ministry of Heavy Industries has extended the bid submission deadline for the ₹7,280-crore REPM manufacturing scheme to attract more global participants. According to the ministry's latest press release, the bid due date has been extended from May 28, 2026 to June 29, 2026, while the opening of technical bids has been rescheduled from May 29, 2026 to June 30, 2026. The government's response to queries from bidders will be issued on June 9, 2026, providing additional clarity for potential participants in the global tender process. The ministry stated that the extension is aimed at facilitating wider participation and giving stakeholders more time to prepare bids for the strategic manufacturing initiative. An addendum regarding the revised schedule has been uploaded on the Central Public Procurement (CPP) Portal for stakeholders.
The global tender was originally floated by the ministry on March 20, 2026 for selecting manufacturers as beneficiaries under the Scheme to Promote Manufacturing of Sintered REPM. As reported by the ministry, the scheme was approved by the Union Cabinet chaired by Prime Minister Narendra Modi on November 26, 2025. The ministry describes this as a first-of-its-kind initiative aimed at creating 6,000 metric tonnes per annum (MTPA) of integrated rare earth permanent magnet manufacturing capacity in India. The government said the initiative is intended to strengthen domestic manufacturing capabilities, reduce import dependence and position India as a significant player in the global rare earth permanent magnet market. This strategic move is part of India's broader effort to enhance self-reliance in advanced manufacturing sectors and support the automotive and mobility industries by ensuring a steady supply of critical components. The scheme specifically targets manufacturing of sintered NdFeB magnets, which are made using neodymium and praseodymium rare earth elements and are among the most powerful commercially used magnets globally.
According to the ministry, rare earth permanent magnets are critical components used across sectors including electric vehicles, wind turbines, consumer electronics, aerospace and defence systems. These magnets are considered among the strongest commercially available magnets and are essential for high-efficiency motors and advanced technology applications. The scheme specifically targets manufacturing of sintered NdFeB magnets, which are made using neodymium and praseodymium rare earth elements and are among the most powerful commercially used magnets globally. The ministry emphasizes that the scheme is aimed at creating a complete domestic manufacturing chain 'from NdPr oxide to finished magnets in India'. Industry estimates suggest demand for rare earth magnets is expected to rise sharply over the next decade, driven by rapid electrification of mobility and expansion in renewable power capacity. India currently relies heavily on imports for these magnets and associated processing technologies, with China dominating the global supply chain. The initiative is expected to boost collaboration between manufacturers and research institutions while supporting cash investments and operational funding for selected projects.
The total financial outlay of the scheme is ₹7,280 crore, including ₹750 crore as capital subsidy and ₹6,450 crore as sales-linked incentives for manufacturers. As reported by the ministry, the scheme is expected to enhance self-reliance and position India as a key player in the global REPM market. The initiative specifically targets reducing dependence on imports in a sector currently dominated by overseas suppliers, especially China, by building a complete value chain from raw materials to finished magnets. The government expects the scheme to help establish an end-to-end domestic value chain — from neodymium-praseodymium (NdPr) oxide processing to finished magnet production — thereby reducing import dependence and strengthening strategic manufacturing capabilities. The initiative is also expected to support India's clean mobility and renewable energy ambitions while positioning the country as a significant player in the global rare earth magnet market. The move comes as India's push to build a domestic critical minerals ecosystem gathers pace amid rising global competition for supply chains tied to electric mobility and clean energy.
