At least 25 companies, including JSW Group and NLC India, have participated in a pre-bid meeting for the government’s ₹7,280 crore scheme aimed at boosting domestic manufacturing of rare earth permanent magnets.
The pre-bid conference, organized by the Ministry of Heavy Industries, witnessed strong industry interest from major players such as Vedanta and Hindustan Zinc as well. The initiative is focused on building a robust ecosystem for sintered rare earth permanent magnets, which are critical components in sectors like electric vehicles, renewable energy, electronics, aerospace, and defence.
The scheme proposes to select up to five companies through a competitive bidding process. Each selected entity will be allowed to set up manufacturing facilities with a capacity of up to 1,200 metric tonnes per annum (MTPA), taking the total planned capacity to 6,000 MTPA.
The government had issued a request for proposal (RFP) on March 20, inviting bids for establishing integrated rare earth magnet production units. The bidding process will follow a transparent two-stage system under the Least Cost Selection (LCS) mechanism via the Central Public Procurement portal. The deadline for bid submission is May 28, with technical bids scheduled to be opened the following day.
Officials stated that the scheme includes significant financial support, comprising sales-linked incentives and capital subsidies, to encourage large-scale investments in this critical sector. The move is aimed at reducing India’s dependence on imports and strengthening domestic capabilities in advanced materials manufacturing.
The strong participation in the pre-bid meeting highlights growing industry interest in rare earth materials, which are increasingly seen as strategic resources amid the global push toward clean energy and high-tech manufacturing.