The Ministry of Heavy Industries has extended the bid submission deadline to June 29, 2026, for India’s ₹7,280-crore rare earth magnet manufacturing scheme after industry sought more time to prepare proposals.

The program aims to build domestic capacity for the high-performance magnets used in electric vehicle motors, a strategic component that India currently imports almost entirely from China.

The Indian government’s Ministry of Heavy Industries, the nodal ministry for the automobile sector, has extended the bid submission deadline for the ₹7,280-crore Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPMs) to June 29, 2026, from May 28.

This comes after multiple stakeholders sought more time to prepare proposals under a first-of-its-kind initiative to build domestic capacity for sintered Neodymium-Iron-Boron (NdFeB) magnets, the high-performance components used in electric vehicle traction motors and currently imported almost entirely from China.

According to the scheme notification reviewed by businessline, the government said India currently imports all of its sintered NdFeB magnet requirements because, despite having upstream capabilities in mining and refining rare earth oxides through IREL (India) Ltd., there is a “notable gap in the industrial-scale midstream capabilities needed for oxide-to-metal, metal-to-alloy and alloy-to-magnet conversion.”

The scheme combines sales-linked incentives with a 15% capital subsidy on eligible investments made after April 1, 2025. Five beneficiaries will be selected through a global tender, with each eligible for capacity allocations ranging from 600 MTPA to 1,200 MTPA.

The Ministry said the extension is intended to “facilitate wider participation and provide additional time for stakeholders in the bidding process.” Responses to bidder queries will be issued on June 9, while technical bids will now be opened on June 30, according to a statement released on Friday. The global tender was originally invited on March 20, 2026, to select manufacturers that will establish integrated rare earth permanent magnet manufacturing facilities in India.

Approved by the Union Cabinet in November 2025 with a total outlay of ₹7,280 crore, the scheme aims to create 6,000 metric tonnes per annum (MTPA) of integrated manufacturing capacity for sintered NdFeB magnets, positioning India as a key player in the global rare earth permanent magnet market.

Used in electric vehicles, wind turbines, high-end electronics, aerospace and defence systems, rare earth permanent magnets are among the most powerful commercially available magnets. In EVs, they sit at `heart of traction motors, enabling lighter motors, higher torque and longer driving range.

The Capital Test

Beneficiaries must invest at least ₹300 crore for a 600 MTPA plant and up to ₹600 crore for capacities of 1,000–1,200 MTPA within two years of receiving a Letter of Award. The three lowest bidders will also receive assured limited supplies of NdPr oxide from IREL, while the balance requirement will need to be sourced independently.

The scheme requires companies to build a complete value chain from NdPr oxide to finished magnets, often necessitating technology-transfer agreements and partnerships with established overseas players.

The Magnet Mission

A senior government official in the Ministry of Heavy Industries said the extension was intended to ensure companies had sufficient time to address technical and financial questions, incorporate clarifications that will be issued on June 9, and submit fully developed proposals.

“This is a strategic technology programme, not a routine manufacturing tender. We would rather allow bidders more time and receive strong, competitive proposals than rush a project of this scale and complexity,” the official said.

In simple terms, the government is trying to build a “Made in India” supply chain for the high-performance magnets that sit at the heart of electric vehicle motors.

The extension suggests that while the ambition to localise the “brain” of electric motors is clear, building this strategic technology ecosystem at home is proving to be one of the most demanding manufacturing challenges in India’s self-reliance journey.

Published on May 15, 2026