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A day after the government announced ₹7,300 crore Rare-earth permanent magnet (REPM) Sources familiar with the matter told CNBC-TV18 that the Center is preparing to move quickly to operationalize the manufacturing plan, with a notification expected to be issued within 15 days.
According to sources, the government may invite bids for the scheme by January 21, 2026, as it looks to build long-term domestic capacity for rare-earth magnets, which are currently almost entirely imported. The scheme aims to reduce dependence on external suppliers and support India’s advanced manufacturing, electric mobility and electronics ecosystem.
Sources said bidders will have to submit a detailed project report highlighting technical capabilities, indigenous expertise or global technology tie-ups. An inter-ministerial group supported by IREL, BARC and CSIR will be constituted to formulate the eligibility criteria and evaluation criteria.
“Start-ups, established companies and first-time players are likely to be invited to bid for the scheme,” said one of the people involved in the consultation. He said companies would be free to collaborate with foreign partners, but they would have to manufacture the magnets in India.
The government is considering proposals from companies willing to invest ₹1,500 crore to set up a plant with 1,200 tonne REPM capacity, while smaller players planning a 600 tonne capacity can also be evaluated.
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During the consultation phase, around 25 companies, including magnet manufacturers and automotive component manufacturers, participated in the discussions. Companies such as Entellus, Ashwini Magnets and Midwest are among those currently producing rare-earth materials in India.
The center also aims to strengthen upstream supplies. The Department of Atomic Energy has asked state-owned IREL to expand production of NdPR oxide, a key raw material for rare-earth magnet manufacturing, sources said.
(edited by : Sheersh Kapoor,