Govt Readying RFP For Rare Earth Magnet Scheme, Minister Urges Prospective Bidders To Participate

New Delhi, Jan 13 (KNN) The Union Government is moving ahead with its plan to build a domestic manufacturing ecosystem for sintered rare earth permanent magnets (REPMs), a critical component for clean energy, mobility and advanced technologies. 

Union Minister for Heavy Industries and Steel H.D. Kumaraswamy on Monday chaired a stakeholder consultation meeting on the recently notified Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets.

Addressing industry representatives and senior officials, the Minister described the scheme as a key intervention to establish a self-reliant, resilient and globally competitive REPM ecosystem.

He encouraged eligible domestic and international players to participate actively in the upcoming bidding process, adding that the Ministry of Heavy Industries is in the process of finalising the Request for Proposal (RFP).

Officials underlined the strategic importance of rare earth magnets in reducing import dependence and strengthening India’s position in global value chains for critical materials.

Explaining the contours of the scheme, the Joint Secretary, Ministry of Heavy Industries, noted that it was formally notified on December 15, 2025. 

The scheme has a total financial outlay of Rs 7,280 crore, comprising Rs 6,450 crore in sales-linked incentives and Rs 750 crore as capital subsidy to support the creation of an aggregate manufacturing capacity of 6,000 metric tonnes per annum of REPMs.

The scheme will be implemented over seven years from the date of award, including a two-year gestation period for setting up integrated manufacturing facilities, followed by five years of incentive disbursement linked to sales. 

The objective is to encourage end-to-end domestic manufacturing and position India as a significant global supplier of REPMs.

Industry participants used the consultation to outline their technical capabilities and investment plans, and several expressed interest in participating under the scheme. 

The Ministry indicated that stakeholder feedback would help fine-tune implementation and ensure timely execution.

The consultation reflects the Government’s broader approach of engaging closely with industry and strategic institutions to accelerate technological self-sufficiency and strengthen India’s role in critical and emerging materials essential for future growth.

(KNN Bureau)