Govt finalising RFP for ₹7,280 crore rare earth magnet scheme: Kumaraswamy

The government is in the process of finalising the Request for Proposal (RFP) for the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, Union Minister H D Kumaraswamy said on Monday, urging domestic and international players to participate in the bidding process.

The Minister for Heavy Industries & Steel chaired a stakeholder consultation meeting on the scheme with various industrial stakeholders from India and abroad.

Kumaraswamy emphasised that the Scheme represents a pivotal step towards establishing a self-reliant, resilient, and globally competitive ecosystem for Rare Earth Permanent Magnets, aligning with the vision of Viksit Bharat by 2047.

"He urged all eligible domestic and international players to seize this opportunity and contribute to India's long-term growth story by participating in the bidding process. The minister also informed that the Ministry is in the process of finalising the Request for Proposal (RFP)," the Heavy Industries Ministry said.

The meeting was attended by the Secretary, Ministry of Heavy Industries; Secretary, Department of Atomic Energy; CMD, IREL (India) Ltd; Director (Technical), NMDC; Director, NFTDC; and various industrial stakeholders from India and abroad.

The total financial outlay for the scheme is ₹7,280 crore, including ₹6,450 crore in sales-linked incentives on REPM sales and ₹750 crore in capital subsidy for setting up an aggregate 6,000 million tonnes per annum (MTPA) of REPM manufacturing facilities.

The scheme spans a total duration of seven years from the date of award, comprising a two-year gestation period for establishing integrated REPM manufacturing facilities and five years for incentive disbursement on REPM sales.

"During the meeting, industry representatives outlined their capabilities, expressing interest in participating in the Scheme," the statement said.