India extends deadline for rare earth magnet manufacturing scheme bids to June 2026

The Ministry of Heavy Industries (MHI) has extended the bid submission deadline for the global tender under the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM). The new deadline is June 29, 2026, replacing the previous date of May 28, 2026. This extension follows requests from multiple stakeholders seeking more time to participate.

Key Highlights

• Bid submission deadline for REPM scheme extended to June 29, 2026
• The scheme aims to establish 6000 MTPA rare earth magnet capacity in India
• Total financial outlay for the scheme is Rs 7280 crore
• Rare earth magnets are essential for electric vehicles and advanced technology sectors

Revised Tender Timeline and Details

The opening date for technical bids has also shifted to June 30, 2026, from the earlier May 29, 2026. The ministry will now issue responses to bidders' queries on June 9, 2026. An official addendum detailing the revised schedule is available on the Central Public Procurement (CPP) Portal for all stakeholders.

The global tender was first released on March 20, 2026. Its purpose is to select beneficiary manufacturers to establish integrated rare earth permanent magnet manufacturing facilities in India under the REPM scheme.

Scheme Objectives and Financial Outlay

The Union Cabinet approved the REPM scheme on November 26, 2025. The scheme has a total financial outlay of Rs 7,280 crore. It aims to create an annual manufacturing capacity of 6,000 metric tons of integrated rare earth permanent magnets in India.

This initiative is designed to strengthen domestic manufacturing, reduce the country's reliance on imports, and position India as a key player in the global rare earth permanent magnet market.

Importance of Rare Earth Permanent Magnets

Rare earth permanent magnets are vital components in several industries. They are used in electric vehicles, wind turbines, consumer electronics, aerospace, and defense systems. These magnets are among the strongest commercially available and are essential for high-efficiency motors and advanced technology applications.

The ministry stated that the scheme aims to develop a complete domestic value chain. This includes processing neodymium-praseodymium (NdPr) oxide and producing finished magnets within India.

Industry Collaboration and Market Impact

The government expects the scheme to boost collaboration between manufacturers and research institutions. It also aims to support cash investments and operational funding for selected projects. The initiative is part of a broader effort to enhance India's self-reliance in advanced manufacturing sectors.

Commercial vehicle makers in India have reported a marginal increase in units sold, reflecting ongoing growth in the sector. The scheme is expected to further support the automotive and mobility industries by ensuring a steady supply of critical components.

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CarBike 360 Says

The deadline extension signals India’s strategic intent to strengthen its rare earth ecosystem and reduce reliance on imports. By allowing more time for stakeholders to participate, the government is fostering a competitive and robust manufacturing landscape. This move is expected to support EV growth, boost local industry, and enhance long-term supply chain resilience.