India rare earth magnet scheme receives 20 bids
Analysis based on 19 articles · First reported Aug 11, 2026 · Last updated Aug 13, 2026
The scheme is expected to boost domestic manufacturing of rare earth permanent magnets, reducing India's reliance on imports and potentially lowering costs for downstream industries such as electric vehicles and renewable energy. The strong response from major companies like Larsen & Toubro and Coal India signals confidence in India's clean energy and critical minerals sector, which could attract further investment and improve supply chain security.
The India — Ministry of Heavy Industries received 20 bids for its Rs 7,280 crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM). The scheme, approved by the India — Union Council of Ministers in November 2025, aims to establish 6,000 metric tonnes per annum (MTPA) of integrated rare earth permanent magnet manufacturing capacity in India. Bidders include Larsen & Toubro, Coal India, ReNew Energy Global, Attero Recycling, Micron Technology, Lohum, Magris Performance Materials, Proterial, Green Energy International, and several other companies. The technical bids were opened on August 13, 2026. The scheme will select five beneficiaries, each eligible for up to 1,200 MTPA, and will run for seven years including a two-year gestation period. The initiative aims to reduce India's dependence on imports, particularly from China, which dominates the global rare earth magnet supply chain. The government expects the scheme to strengthen domestic supply for electric vehicles, wind turbines, electronics, and defence, and to support India's net zero 2070 target.
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