Govt Hosts Pre-Bid Meet for Rare Earth Magnet Scheme Push

The Ministry of Heavy Industries has moved a step closer to boosting India’s advanced manufacturing sector by holding a pre-bid meeting for its rare earth magnet production scheme. Conducted on April 7, the meeting saw participation from 25 companies, indicating strong industry interest in the initiative.

The scheme is part of the government’s larger plan to reduce import dependence and build domestic manufacturing capabilities in critical technologies. Rare earth magnets, especially neodymium-iron-boron (NdFeB) magnets, play a crucial role in industries such as electric vehicles, renewable energy, electronics, aerospace, and defence.

With a proposed outlay of ₹7,280 crore, the scheme aims to develop an integrated ecosystem for permanent magnet manufacturing in India. The government plans to create a production capacity of 6,000 metric tonnes per annum (MTPA), which will be allocated among selected companies through a competitive bidding process.

Officials said the pre-bid meeting gave companies an opportunity to clarify key aspects of the scheme, including technical requirements, financial structure, and operational guidelines. The selection process will follow a transparent two-stage system, involving both technical and financial evaluations.

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India currently depends heavily on imports—mainly from China—for rare earth magnets, which are vital for several fast-growing industries. By encouraging import substitution in India, the government aims to strengthen supply chain security and support its broader Make in India initiative.

The bidding process is now underway, with submissions expected over the next few months. Once implemented, the scheme is expected to create a strong domestic value chain, covering everything from raw materials to finished magnet products.

Industry experts believe the strong response at the pre-bid stage reflects growing confidence in the government’s push to develop this critical sector. If executed well, the initiative could position India as a key player in the global rare earth supply chain while advancing the country’s clean energy and mobility ambitions.